Metals Exploration (AIM:MTL), the AIM-listed gold production, development and exploration company with assets in the Philippines and Nicaragua, said first gold production at its La India project in Nicaragua remains on track for December, alongside a new $27 million equipment loan.
The company has drawn down an initial $20.2 million of the facility from Banco de America Central S.A., a local Nicaraguan bank, secured against its Caterpillar mining fleet with a corporate guarantee from Metals Exploration.
"We have also successfully completed a US$27 million debt facility... reimbursing the majority of the equipment capital committed from our own resources to date and significantly strengthening the Company's cash position", said chief executive Darren Bowden.
The five-year loan carries an initial rate of 7.00% and a floor of 6.85%, with a 12-month interest-only grace period before principal repayments begin.
Construction is progressing across multiple fronts: the process plant's structural, mechanical, piping and electrical installation is roughly 50% complete, with the ball mill installed in its final position and the SAG mill ready to follow.
Civil works are more advanced, with bulk earthworks 93% complete and pre-stripping of the open pit at 71%.
The company flagged delivery delays to some imported equipment linked to shipping disruption from the conflict in Iran, though it said the impact has so far been managed within the construction programme.
Separately, gold production from the company's Runruno mine in the Philippines is forecast to land at the upper end of 2026 guidance of 40,000 to 48,000 ounces, driven by higher-grade ore from the Stage 5 pit.
News Intelligence what this means for the company
Metals Exploration has drawn $20.2 million of a $27 million equipment loan from a Nicaraguan bank to fund La India's build-out, while reaffirming first gold in December remains on track. The facility—secured against mining equipment at 7% interest with a 12-month grace period—materially strengthens cash position at a critical juncture: civil works are 93% complete on earthworks and 71% on pit pre-stripping, while the process plant is roughly 50% through installation. Shipping delays from Iran conflict disruption have been absorbed within the construction schedule so far.
The loan replaces internal capital spend and extends the runway into production ramp-up, reducing balance-sheet strain ahead of La India's gold pour. December first gold remains the key binary; the facility's 12-month interest-only grace period buys time for production cash flow to cover debt service, but execution risk on the final 50% of plant installation and equipment delivery remains material.
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