By: Creamer media

Imara will ultimately pay back $2-million on the loan since it incurs 100% interest, through 50% of the free cash flow generated by the mine once contractor-led production starts.

The company is in advanced negotiations for such a contract, which it says will significantly reduce capital and working capital requirements by having the contractor supply equipment and an operations team.

Imara will receive a royalty on produced gold.

Kilimapesa is poised to be a 50 000 t a month heap leach operation.

Imara executive director Jason Brewer says the funding and operating framework is about putting Kilimapesa back onto a structured and sustainable footing.

“We are addressing community, land and statutory matters, aligning with local stakeholders and putting in place a contractor-led operating model. Subject to the required confirmations and mobilisation, this gives the company a clearer path toward restarting mechanised production at Kilimapesa,” he concludes.