Erdene, a company developing a new gold mine in southwest Mongolia, says it has raised enough money to progress to production.
The company secured the funding through the European Bank for Reconstruction and Development (ERBD) and equity financing.
It also received a C$15 million investment from Eric Sprott, a Canadian billionaire known as the 'Bay Street wizard' for his timely warnings of the 2008 market crash.
According to Forbes, Sprott has previously claimed to hold 90 per cent of his wealth in gold and silver.
“The EBRD’s conversion, along with the proceeds of the C$20 million equity financing led by a C$15 million strategic investment from Eric Sprott, position Erdene to secure the project finance required to move Bayan Khundii rapidly to production," Peter Akerley, Erdene’s President and CEO, said.
Drilling at the Bayan Khundii site last month revealed visible gold 115 metres below the surface.
Erdene is now preparing for construction at the site, with mine support infrastructure progressing on schedule, tendering open for facilities and services, and site arrangements submitted for approval.
If all goes as planned, the company says it will rapidly ramp up construction in the second quarter of next year.
"The company is focused on expanding the resources throughout the district and construction readiness efforts for the Bayan Khundii project as we target first gold in 2022," Akerley said.
Erdene predicts that the open pit mine will produce an average of 63,500 ounces of gold per year for seven years, which represents a grand total of around US$842 million at current prices (US$1894.74).
Do you want to help the world audience understand the dizzying political changes occurring in Mongolia today? Can you look at local news stories from a global perspective? Join the conversation by contributing to Mongolia Weekly - the first-ever weekly newsletter in English offering commentaries and insights into Mongolian politics, elections, policy & regulatory changes, and foreign policy trends.