OVG Ovoca Gold

    RNS Number : 1000A
  Ovoca Gold PLC
  29 July 2008
   

    Ovoca Gold PLC
    29 July 2008

    Ovoca Gold plc ("Ovoca" of the "Company")

    Project Financing


    Ovoca (London AIM (OVG.L), Frankfurt (OVX.GR) and Dublin IEX (OVX.IR)) is pleased to announce that it has signed a non-binding term
sheet with a major Russian banking institution for a USD 92.7 million project loan facility to cover capital costs for the Goltsovoye silver
mine project. The contingency applied to the pre production capital costs estimate by Scott Wilson Mining has been increased by 15% in the
light of recent inflation. Proceeds of the facility will be used to finance construction and commissioning of the Goltsovoye silver mine.
The bank due diligence procedures is expected take 10 to 12 weeks to finalize  

    According to the Bankable Feasibility Study (BFS) carried out by Scott Wilson Mining, annual average mine production will be 260,000
tonnes of ore, and 5.8 million ounces of silver, during a six year mine life based on the reserves in Ore Zone I. In early 2007 Wardell
Armstrong completed a JORC silver resource estimate of 69 million ounces in Ore Zones I and II. The Russian Government Commission for
Natural Resources (GKZ) later approved a resource of 81.33 million ounces of silver in these Zones. The mine life is expected to be
considerably longer than the 6 years. 

    In addition to Goltsovoye,  Ovoca has a number of other projects located in the Kola Peninsula at advanced feasibility stages, such as
Pellapahk which is a molybdenum-copper project with a potentially world class molybdenum resource.

    Leonid Skoptsov, the Ovoca CEO, comments:

    "I am glad that despite the turbulent financial and adverse credit markets, the Goltosovoye project has continued to attract significant
interest from a number of banks. The signing of a term sheet with a major Russian bank is yet a further indication of the strength of both
the project and the Russian financial system."


    The above information has been reviewed and verified by Roger Turner, a Director of Ovoca, for the purposes of Mining, Oil and Gas
Companies issued by The London Stock Exchange in March 2006. Mr. Turner with 41 years mining engineering, management and consulting
experience, graduated as a mining engineer from the Camborne School of Mines and has an MSc degree in Economic Geology from Leicester
University. He is a member in good standing of the Institute of Materials, Mining and Metallurgy and is a UK Chartered Engineer.



    For further information contact

 Ovoca Gold plc
 Mr. Danesh Varma CFO        +44 8452 606 034
                             danesh.varma@
                             ovocagold.com 
 Mr. Leonid Skoptsov CEO     +7 495 648 26 46
                             leonid.skoptsov@
                             ovocagold.com 

 Davy
 John Frain / Fergal Meegan  +353 1 679 6363


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCUKRRRWNRBUAR

Ovoca Gold (LSE:OVG)
Historical Stock Chart
From Aug 2024 to Sep 2024

Ovoca Gold (LSE:OVG)
Historical Stock Chart
From Sep 2023 to Sep 2024