Barclays and Credit Suisse have agreed to give Canadian precious metals company Sulliden US$125mn in project finance, subject to due diligence.

The Canadian-based precious metals company will utilise the credit for the construction and development of its Shahuindo gold and silver facility in Peru. The loan is priced at Libor plus 4.85% pre-completion and Libor plus 4.35% post-completion.

The facility is limited-recourse and is expected to be available to Sulliden in the first quarter of 2013. It will include a gold price risk management facility.

A spokesperson for Sulliden tells GTR that the funding will cover a large portion of their capital expenditure between now and the time construction is due to start. It also has close to US$30mn in the bank. In the event that the company requires more capital, it’s likely to be in the form of equity.

CEO of Sulliden Peter Tagliamonte says: “A US$125mn debt facility would fund a significant portion of the capital required for the first phase of the Shahuindo mine. The robust nature of our project economics is clearly demonstrated by the commitment of our lenders to this facility and we look forward to completing this transaction. It marks another important de-risking event for the project as we move towards becoming a gold producer.”