Red Eagle Mining looks set to significantly develop its flagship Santa Rosa Gold Project, following the announcement of a major equity financing.
The Canadian gold producer, with plans on becoming a world class producer with projects across Colombia, announced that it had achieved a private placement of $8mn in equity financing.
The funds will be used for working capital at the Santa Rosa Gold Project, located within the prolific Antioquia Batholith, Colombia.
The project is historical, with mining operations predating the 17th century where it is believed an estimated 30 million tonnes of gold were mined at the site.
It is 100% wholly owned by Red Eagle Mining, and incorporates the San Ramon Gold Mine, which boasts excellent infrastructure at the site including water, roads, grid power and local staffing.
The San Ramon Gold Mine is part of the company’s large Santa Rosa Gold Project, located in Colombia. Gold mining in the area actually pre-dates the 17th century when it was estimated that around 30 million tonnes of gold were mined.
The San Ramon Gold Mine, a single shear zone within the Santa Rosa Gold Project has a production of around 1000 tonnes per day.
Red Eagle is on track for a 2017 production of 70,000 oz.
The construction of the San Ramon Gold Mine and Mill remained within budget and on schedule within the 14-month construction period to first gold in November 2016.
Red Eagle Mining also operates and controls Red Eagle Exploration which owns 100% of the California Gold, Vetas Gold, and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.