Work on gold mine in Nicaragua halted after financing fails

Central Sun Mining has stopped work on its Orosi gold mine in Nicaragua after the fail of $22 million in financing.

Wednesday, October 22, 2008

Central Sun, already operating the Limon gold mine in Nicaragua, had earlier entered into a non-binding term sheet with the bank for $22.5 million to complete the Orosi project, on which it has spent $31 million to date and which was expected to be competed next spring.

However, "due to the current global financial situation, the banking institution was unable to proceed with the debt financing," the company said.

It is "continuing active discussions with various other financial institutions," but has "temporarily suspended" work at Orosi, acquired in July 2006 and being converted from a heap leach operation to a conventional milling system to increase gold recoveries.

More on this topic

Colombian Mining Company Buys Gold Mine in Nicaragua

March 2013

Mineros SA has bought 90% of the shares of the Bonanza mine from the company Hemco, for an amount that has not been disclosed.

From a press release from Hemco in Nicaragua:

Mineros, S.A, the Colombian private business group with over 38 years experience in the mining sector has decided to invest in Nicaragua acquiring a 90% stake in Hemco Nicaragua S.A in Bonanza, in the North Atlantic Autonomous Region (RAAN).

$4.5 Million for Guatemalan Mine

May 2010

Radius Gold will invest $4.5 million in gold extraction at its Holly-Banderas mine, in southeast Guatemala.

The company operates two gold mines in Guatemala and one in Nicaragua. It has secured the $4.5 million financing through a non brokered private placement.

Simon Ridgway, the President of Radius said: "We hold a very large land position in a very prospective belt of rocks.

Gold mines in Nicaragua sold for $53 million.

February 2009

B2Gold Corp. made the acquisition from Central Sun Mining, owner of the gold mines in Nicaragua, for $53.7 million.

Central Sun Mining was the owner of the Limon and the Orosi mines, and had an option to acquire 100% of the Mestiza gold mine, also located in Nicaragua.

For the purchasing company, B2Gold Corp., from Canada, operation of the mine will allow it to add Nicaraguan gold production to its assets.

Positive Nicaragua Orosi Mine feasibility study

May 2008

Central Sun Mining Inc. reported results of a feasibility study on the Orosi Mine located in Nicaragua, including economic forecasts and independently prepared Mineral Resource and Mineral Reserve estimates.

The Company is currently converting the Orosi Mine from a heap leach operation to a conventional milling operation.

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