GoGold Resources has received US$40 million from Red Kite Mine Finance Funds for the construction of the junior's Parral Tailings Project located in Chihuahua State Mexico.
GoGold, which announced the financing on Friday, says it now has US$55 million in its treasury. The company anticipates that its Parral Tailings Project will cost US$35 million to develop, with remaining funds being used for exploration.
The project is a 141 hectare property that is host to large tailings left over from over Mina La Prieta mine, which operated for over 300 years. GoGold says inefficient recovery left significant gold and silver behind, 214,000 ounces gold and 26,400,000 ounces silver mineral resource.
The funds from Red Kite, a company that provides mining companies with project financing and metal off-take agreements, was a mixture of debt and equity.