Metals X cashes in on gold pre-pay

Metals X has secured $40.445 million in a gold pre-pay arrangement with Citibank.

Under the terms of the deal, Metals X will be contracted to deliver 1250 ounces of gold a month for two years for a total of 30,000 ounces.

Metals X will use the cash for the continued expansion of its gold division.

The company said it had cash and working capital of $90.8 million (unaudited) at the end of August.

In June, Metals X completed the acquisition of the Meekatharra gold project from Reed Resources. It also owns the Higginsville and South Kalgoorlie gold operations, through its acquisition of Alacer Gold's Australian assets last year for $44 million.

In August, Metals X posted a $37.4 million profit, up 332 per cent on the previous year.

Metals X shares were steady at 23.5 cents at 12.10pm.