Austral Gold Secures $1M Loan to Fuel Casposo Plant Commissioning

Austral Gold Strengthens Casposo Financing

Austral Gold Limited has announced a new US$1 million short-term loan facility from Banco San Juan S.A. to bolster working capital at its Casposo processing plant in Argentina. This follows a previous US$7 million loan secured in late 2024, underscoring the company’s commitment to advancing the refurbishment and commissioning of this key asset.

The loan carries an 8.5% annual interest rate and is due for repayment in a lump sum within 180 days, with the company planning to fund repayment through proceeds from mineral exports. Notably, the loan is unsecured, reflecting a degree of confidence from the lender in Austral Gold’s operational outlook and export potential.

Progress on Casposo Plant Refurbishment

Since the last update in July, Austral Gold has completed significant upgrades at Casposo, including the relining and installation of the SAG mill, installation of new hydrocyclones, and refurbishment of the filter band. These enhancements are critical steps toward commissioning the plant, which is expected to improve processing efficiency and output.

The refurbishment marks a pivotal phase in Austral Gold’s growth strategy, aiming to increase production capacity and strengthen its portfolio of assets in the Americas. The company’s focus on production, exploration, and equity investments continues to drive its expansion ambitions.

Strategic Implications and Outlook

Securing additional working capital through this loan suggests Austral Gold is positioning itself to manage operational costs effectively during the commissioning phase. While the unsecured nature of the loan and reliance on mineral export proceeds for repayment introduce some risk, the move signals confidence in near-term production ramp-up.

Investors will be watching closely for updates on Casposo’s commissioning progress and subsequent production figures, which will be key indicators of Austral Gold’s ability to convert refurbishment investments into tangible returns.