Tolu Minerals Ltd. has secured a K95 million (about A$30 million) debt facility from Papua New Guinean bank National Banking Corporation Ltd. (NBC), providing funding for the remaining capital works required to restart the Tolukuma Gold Mine in Central Province.
Tolu said the facility, combined with approximately A$50 million in existing cash as of June 30, 2026, leaves the company fully funded to restart the mine, with production targeted for the first quarter of 2027.
The five-year facility carries an interest rate of 9.60% a year and is secured against the company's assets. Drawdown is expected in September, subject to customary conditions precedent, including registration of security.
The funding will support completion of major infrastructure and mine restart works, including the Major Infrastructure Project access road and incline, dewatering exploration drives, underground tailings facilities, processing plant refurbishment, power upgrades, the hydro plant and camp expansion.
Tolu Managing Director and Chief Executive Officer Chris Muller described the financing as a defining moment for the company, saying the focus is now on completing the capital works, delivering an updated Mineral Resource Estimate and returning Tolukuma to production.
“With the balance sheet now in place, with the existing cash balance plus the additional A$30m to complete the restart of Tolukuma, our focus is squarely on execution,” Muller said.
Restart works advance
Tolu said underground development at Tolukuma recommenced on the 1560 Level during the June quarter, with early face sampling returning multiple intervals exceeding 30 grams per tonne of gold.
Refurbishment of the processing plant is substantially complete, while supporting infrastructure works are continuing. The staged restart is expected to build processing capacity to approximately 500 tonnes per day by the end of 2027.
The company said the debt facility will fund completion of the incline access road and tunnels, processing plant and power infrastructure refurbishment, camp upgrades and construction of the tailings facility.
Resource estimate due
Tolu also expects to release an updated Mineral Resource Estimate within the next 14 days, describing it as the most comprehensive review of the Tolukuma resource undertaken to date.
The estimate is being prepared by independent consultants H&S Consultants and incorporates an updated three-dimensional geological model, together with historical and recent drilling data. Tolu said the database includes results from its most intensive drilling program at Tolukuma to date.
The updated resource is expected to underpin a new mine plan covering the Southern Expansion, Northern Expansion and Central Mine Zones.
Tolu said it is continuing a 75,000-plus-metre drilling campaign while advancing the capital works program and preparing for production in the first quarter of 2027.
The company said the development puts it on track to transition from an explorer to a producer over the coming months.
Editorial note: The source announcement contains forward-looking statements regarding the facility drawdown, Mineral Resource Estimate, funding position and first-gold timing, and notes that these are subject to risks and uncertainties, including satisfaction of the facility's conditions precedent.
