Hochschild secures loan for Peruvian project

Precious metals producer Hochschild Mining has secured a loan facility to help finance its Inmaculada project in Peru.

The firm's 60%-owned joint venture with International Minerals Corporation, Minera Suyamarca, has entered into a $140m secured seven-year loan facility with its banks to partially fund the initial capital expenditure for the project, which has a total capex of $370m.

No principal is payable for the first two years of the facility. The interest rate is based on the three-month LIBOR rate plus 3.0%, with customary closing fees and charges.

Hochschild said in January that it had continued to receive "encouraging results" from the exploration drilling programme at Inmaculada in the final three months of 2012.

Currently, the company is undergoing detailed plant engineering (which started in the fourth quarter of 2012) and expects to receive the final mill construction permit for the project in the second half of this year. Commissioning is scheduled for the second half of 2014.

Shares were up 2.32% at 309.2p in early trading on Monday.