The Export-Import Bank of the United States (EXIM) has offered a loan of up to USD$50 million for the Augusta Gold‘s (TSE: G) Reward project in Nye county, Nevada.
The company outlined the specifics of the deal in a Monday press release. The letter outlines EXIM’s interest in offering a “direct, competitively priced loan” with a repayment term of 10 years, including an interest only period.
Augusta Gold says its Reward gold project meets EXIM’s policy goals of job creation and export nexus. The EXIM letter highlights Augusta’s experienced management team and potential backing from state and local governments.
The Reward project sits along Nevada’s prolific Walker Lane Trend, known for its gold production history and discovery potential.
Work on the property has already outlined 370,000 ounces in reserves, grading 0.86 gram per tonne. Additionally, a feasibility study released last September projects average annual production of 39,000 ounces over 7.6 years.
Peak output could reach 47,000 ounces per year. The company also expects first production as early as fall 2025, pending funding.
The company has designed the mine as a conventional open-pit, heap-leach operation. It is fully permitted and ready for construction. The project carries an initial capital cost of nearly $90 million. Additionally, it requires $32 million in sustaining capital over its life.
“This letter of interest from EXIM for over 50 per cent of the project construction cost, marks a significant milestone for Augusta Gold and underscores the strategic importance of the Reward project to domestic mineral production and economic development,” said Don Taylor, Augusta Gold CEO.
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Reward project shows Nevada’s strong appeal
Once complete, Reward will become Augusta’s first operating mine in Nevada’s gold district. The company also plans to integrate Reward with its larger Bullfrog project, located 11 kilometres to the northwest.
“Our goal is to be a low-cost, 150,000-ounce-per-year producer in Nevada by 2027,” said Don Taylor, CEO of Augusta Gold.
The EXIM Bank has lined up sizeable loans for several projects, including Reward. Additionally, the bank expressed interest in financing the Tanbreez rare earth project in Greenland and the K.Hill manganese project in Botswana.
The Reward project shows Nevada’s growing appeal as a hub for both gold and emerging polymetallic mining developments.
Nevada continues to attract explorers and developers targeting both gold and critical metals. NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is advancing a promising gold-antimony project, positioning itself within the strategic metals supply chain.
Also active in the state, US Gold Corp (NASDAQ: USAU) is developing the Keystone and CK Gold projects, which hold both gold and copper.
Further south, i-80 Gold Corp. (TSE: IAU) (NYSE: IAUX) operates several sites along the Carlin and Battle Mountain-Eureka trends. These properties contain high-grade gold alongside silver and base metals.
This blend of precious and industrial metals enhances Nevada’s value, supporting domestic supply chains and attracting both investors and policymakers alike.
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NevGold Corp is a sponsor of Mugglehead news coverage
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