Reed in $23m Barclays debt funding deal
Reed in $23m Barclays debt funding deal

Reed Resources is finalising $23 million in debt funding through investment bank Barclays for working capital while it begins the ramp-up of its Meekatharra gold project.

Reed said the funding, which involves a $20 million revolving credit facility and a $3 million performance bond facility, would allow it to continue exploration and business development activities while Meekatharra comes online.

The company said its recently announced $40 million underwritten rights issue would fund all construction and commissioning costs for Meekatharra.

Managing director Chris Reed said the debt funding was a major vote of confidence in the Meekatharra gold project and its future production profile.

"We are currently refurbishing the existing plant and we remain on-track for gold production in the December quarter of this year," he said.

"Whilst hedging is required under the facility, it represents less than 8 per cent of our current probable reserves, and it enables us to remove 100 per cent of the downside risk in the gold price."

Reed shares were half a cent lower at 20 cents at 11.55am.

The West Australian

Popular videos

Our Picks

Compare & Save

Follow Us

More from The West