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Mining industry

Cyprus Amax Minerals Secures $100 Million in Funding for Kubaka Gold Mining Project

Strategic Insights

— 1 min read

Cyprus Amax Minerals Co. has made significant progress in the development of its Kubaka gold mining project in Far Eastern Russia. Partners in the joint venture have signed loan agreements totaling $100 million to finance the project, marking the first financing commitments by the U.S. Overseas Private Investment Corp. (OPIC) and the European Bank for Reconstruction and Development (EBRD) in Russia. The project, which is expected to produce over 310,000 ounces of gold and 235,000 ounces of silver annually, has already begun construction and is expected to start production in 1996.

Key Takeaways:

  • Cyprus Amax Minerals Co. secured $100 million in funding for the Kubaka gold mining project through loan agreements with OPIC and EBRD.
  • The project, valued at $180 million, will be managed by Cyprus Magadan Gold Mining Co., a subsidiary of Cyprus Amax Minerals Co.
  • The joint venture partners will provide the balance of the funding, while OPIC will provide political risk insurance to cover Cyprus Amax Minerals' exposure.
  • The financing commitments by OPIC and EBRD are the first for either institution in Russia proper.
  • Omolon's Russian partners, including Magadan Gold-Silver Co. and Elektrum, stand to benefit from the project through jobs and local business opportunities.
  • The project is expected to start production in 1996 and will operate for seven years, producing over 310,000 ounces of gold and 235,000 ounces of silver annually.

Statistics:

  • $100 million: Total funding secured by the joint venture partners for the Kubaka gold mining project.
  • $52.5 million: Loan agreement with OPIC.
  • $47.5 million: Loan agreement with EBRD.
  • $180 million: Total project valuation.
  • 310,000: Average annual gold production at the Kubaka mine.
  • 235,000: Average annual silver production at the Kubaka mine.
  • 500: Number of Russian construction workers building the mine and processing facilities.
  • 250: Number of employees operating the mine after completion.

Sources:

  • PRNewswire, "Cyprus Amax Minerals Co. Announces $100 Million Funding for Kubaka Gold Mining Project in Russia" (June 30, 1995)
  • Companies should note that this is the exact information sourced from the original text.

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