Metals Exploration secures $27m financing for La India gold project

Metals Exploration has secured $27 million in equipment financing to support the final stages of construction at its La India gold project in Nicaragua. The company, listed on the AIM market, aims to achieve first production at the site by December 2026. The new funding facility is designed to replenish cash reserves used for the acquisition of heavy mining equipment and to cover the costs of additional machinery as it arrives on site.

The financing arrangement is a five-year facility with Banco de America Central. Metals Exploration has already drawn down $20.2 million from this line of credit. This capital was primarily utilised to purchase its Caterpillar mining fleet, a significant investment that sits outside the broader development and construction budget for the La India project. The company stated that the remaining $6.8 million will be deployed as further equipment is delivered to Nicaragua. The loan carries an initial annual interest rate of 7%, with a floor set at 6.85%, and matures on 17 August 2031. A 12-month grace period applies to principal repayment, after which the loan will be repaid over 48 equal monthly instalments.

Construction progress at La India is advancing steadily towards the commissioning target. Structural, mechanical, piping and electrical installation work is approximately 50 percent complete. The grinding building is structurally finished, with the ball mill in its final position and the SAG mill being prepared for installation. Fit-out of the carbon-in-leach tanks is nearing completion, with 53 of 60 tank rings installed and the leach tanks roughly 80 percent complete. All agitators for the CIL and detox tanks have been assembled. Bulk earthworks are 93 percent complete, while civil foundations have reached 92 percent. Pre-stripping of the open pit is 71 percent finished, and the company has stockpiled approximately 244,000 tonnes of ore on the run-of-mine pad in preparation for commissioning.

Site infrastructure is also close to completion. The water treatment plant is finished, and camp installation is about 90 percent complete. The tailings storage facility is approximately 60 percent constructed. A 2-MW grid connection to the national electricity transmission company ENATREL has been energized, though the main sub-station is scheduled for completion in December. The company acknowledged that international shipping disruptions linked to the conflict in Iran have delayed some imported equipment, creating potential scheduling risks. However, it noted that these impacts have been managed within the overall construction programme, and alternative logistics arrangements are being assessed to mitigate further delays. Meanwhile, the company continues to generate gold from its Runruno mine in the Philippines, which is expected to produce near the upper end of its 2026 guidance due to higher-grade ore.