Mining and exploration play Cambridge Mineral Resources has agreed £7.6 million of funding for three Colombian gold mines.

Bombed-out Cambridge has pleased investors by arranging a ‘pre-payment agreement’ with hedge fund Bluecrest and others. In return for up to $15 million (£7.5 million) in three stages, the AIM-quoted company will make set amounts of gold or its value in US dollars available for 30 months after each mine starts.

Cambridge will receive the first $5.5 million to bring its Quintana mine into production this year at an initial rate of 16,000 oz a year, and must make 11,750 oz available to the lenders. Two further pre-payments totalling $9.5 million will become available on completion of feasibility studies on two other Colombian projects, which Cambridge has under option.

Colin Andrews, the company’s managing director, says these funds will enable the company to bring its first three Colombian mines into production over the next 18 months, ‘which is in line with our previously stated target of achieving annual gold production of 100,000 oz’. The deal gives Cambridge shares, floated ten years ago at 16p and now 0.62p up at 2.75p, scope to rally at some point.

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