OCIM grants AuVert a first round of financing as a Prepayment for Gold and Platinum
Ocim Precious Metals SA is pleased to announce the signature of an alternative financing arrangement via prepayment of gold and platinum totaling USD 2.5 million with AuVert Columbia SAS and Ulloa Recursos Naturales SAS.
The AuVert Mining Group, a Canadian company based in Calgary has developed a disruptive processing unit for mining alluvial deposits with a negative mercury footprint. Not only is no mercury released into the environment, but any mercury present in the area treated is gradually eliminated. Made possible by 25 years of R&D and supported by the Swiss Better Gold Association, this unique and patented technology offers local artisanal mining communities the opportunity to operate at alluvial sites in a manner that is more responsible, more efficient and more secure than traditional facilities, all while earning a better return on their labour.
AuVert Mining Group currently operates its first unit at Condoto, part of the historical mining region of Chocó, Colombia, via Auvert Colombia SAS and Ulloa Recursos Naturales SAS (hereafter jointly “AuVert”). This site has the unique feature of combining gold and native platinum at the same alluvial site. Idle for almost a year due to a lack of funding, it now has US$5 million worth of equipment onsite and a local team that is fully trained and operational.
OCIM is providing AuVert with USD 2.5 million in gold and platinum prepayment financing. This non-dilutive alternative financing includes a 3-month grace period and will be repaid over the following 12 months as monthly deliveries of a pre-determined quantity of gold and platinum. The actual quantity will be determined by applying a discount to prevailing spot prices on the date funds are transferred to AuVert.
This transaction will fund both the acquisition of additional mining equipment in the amount of USD 2 million and finance the operator's working capital for the remaining USD 500,000. This financing will enable reactivation of the Condoto unit at a volume of 75 cubic meters of ore processed per hour, in view to ultimately expanding to the maximum capacity of 200 cubic meters. Above all, it constitutes a prerequisite step in the widespread deployment of this innovative and responsible technology at other sites in Colombia, then across South America and potentially in Africa.
The future production of the Condoto processing unit will be sent for refining to the prestigious Swiss foundry MKS PAMP, a group that has pioneered sustainable development in the mining industry. An agreement among AuVert, OCIM and MKS PAMP is currently being drafted to ensure timely delivery of the precious metals stipulated in the prepayment contract.
“This transaction is critically important in several ways. Firstly, it is the first prepayment financing ever to feature the two highly strategic metals that are gold and platinum, a rare combination geologically speaking. And above all, it allows us to support a virtuous, innovative and forward-looking technology at a critical time in the life of the company. It gives us the opportunity to participate in the transformation of alluvial mining and the improvement of quality-of-life for artisanal miners, while meeting no less than six of the UN's sustainable development goals,” explained Laurent Mathiot, CEO and Chairman of OCIM.
AuVert Mining Group brings ecologically responsible natural resource recovery to communities around the globe. Through our patented technology, precious metals can be extracted at very high yields without the use of mercury. The AuVert Plant can also reclaim free elemental mercury left behind by artisanal or large-scale traditional operations as it goes. AuVert is a revolution in placer mining.
To learn more about AuVert, visit www.auvert.ca