Tolu Minerals lands $21M debt facility to restart Tolukuma gold mine
What's the deal? Tolu MineralsDealroom has a profile for this one. Try Dealroom → (ASX:TOK) has accepted a 95 million kina (roughly $21 million) debt facility from National BankingDealroom has a profile for this one. Try Dealroom → to fund capital works at its Tolukuma Gold Mine in Papua New Guinea. The five-year loan carries a 9.60% annual interest rate.
Why now? Combined with about $50 million in cash reserves as of June 30, the facility gives Tolu the balance sheet it needs to hit target production in the first quarter of 2027.
What's the endgame? Proceeds will pay for access roads, dewatering, tailings facilities, mill refurbishment, power upgrades, and camp expansion. Underground development has resumed on the 1560 level, with staged restarts aiming for 500 tonnes per day by late 2027.
"With the balance sheet now in place ... our focus is squarely on execution," said managing director and chief executive officer Dr Chris Muller. The company plans to release an updated mineral resource estimate within two weeks.
Tolu shares rose to $1.34 following the announcement.
The signal: The debt package marks a quick re-raise as Tolu moves from financing to execution on the Tolukuma restart, betting that a debt-plus-cash mix can carry the mine back into production without further equity dilution.
Read more: grafa.com
Image credit: denisbin
