Costa Rican mining firm Veritas Gold has signed the country’s first mining finance deal with a US$3.5mn debt package from boutique lending company Texel Capital.

Texel arranged and lent on the one-year deal, while Banco Nacional de Costa Rica acted as the trustee.

The mining firm, a subsidiary of Ascot Mining, is paying a healthy 825 basis point interest rating on the deal.

The money will be used for gold mine exploration and working capital for equipment upgrades.

Furthermore, the money will be used for listing costs on Canada and the UK’s junior stock markets, the TSX and AIM.

A spokesperson from Texel tells GTR: “This is the first mining finance deal for a Costa Rican company and required both legal and technical due diligence to perfect the level of finance and security structure.

“The finance will enable Ascot to become a stable gold producing company and to prove reserves ahead of a phase two expansion programme in 2012.”