NEW YORK Malaga Inc. has secured a $2-million loan from a Peruvian bank, as well as repaired a severed hydroelectric transmission line at its Pasto Bueno tungsten project, the company said.
The company suspended fourth-quarter operations at its Pasto Bueno Mine after a severed hydroelectric transmission line cut off power to the plant (amm.com, Nov. 9) but has since repaired the damaged infrastructure, it said Thursday.
However, Malagawhich posted a loss of $883,000 in the third quarter (amm.com, Nov. 15)said it will require additional funding before it can bring the mine back online.
"The repair of the hydroelectric line and the bank financing are the initial steps to get back into operations," chief executive officer Pierre Monet said. "Once we secure the necessary financing, we intend to restart production."
Montreal-based Malaga has already received $1.5 million of the loan, which has a term of 36 months and is secured by the companys real estate in Lima, Peru.
The company has also entered into a contract to sell all copper by-product currently at the tungsten project, it said.