Financing OK'd for equipment at Hycroft mine

Allied Nevada Gold Corp. of Reno said last week it's nailed down offers to finance $300 million in equipment for its expansion of the Hycroft Mine near Winnemucca.

The publicly held company said it received offers from Caterpillar Financial Services Corp., Komatsu Financial and an unidentified major U.S. financial institution to finance the acquisition of a fleet of vehicles for the mine.

Allied Nevada has placed orders for 33 of Komatsu's 320-ton haul trucks along with three 72-yard wire rope shovels from Caterpillar.

Interest rates on the financing range from 5 percent to 6 percent, Allied Nevada said in a press release.

The company also said it's ordered an $8.6 million crusher to be installed at the mine. It's buying the gyratory crusher from FLSmidth of Salt Lake City, Utah, and expects delivery by late 2012.

The total cost of the crusher project is expected to be about $73.3 million. Allied Nevada says it expects the new crusher system will improve the efficiency of Hycroft and increase the amount of gold and silver it recovers from the ores it processes.

Allied Nevada says it expects the expanded mining and processing facilities will triple the production of Hycroft Mine by 2013.

The mine is 54 miles west of Winnemucca in Humboldt County.


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