(Reuters) - Canada’s Carpathian Gold Inc CPN.TO said it would borrow up to $97 million from Macquarie Bank Ltd to fund the development of its Riacho dos Machados Gold project in Brazil, sending its shares up 12 percent.
Shares of the Toronto, Ontario-based company were trading up 6 percent at 47 Canadian cents on Wednesday morning. They had earlier touched a high of 50 Canadian cents on the Toronto Stock Exchange.
Canada’s Barrick Gold Corp (ABX.TO) holds a 9 percent stake in the gold and copper explorer, which operates in Romania and Brazil.
Carpathian’s unit Mineracao Richao dos Machados will be the borrower under the five-year facility, which will be provided in two tranches, it said in a statement.
The company expects the Riacho dos Machados Gold project to produce roughly 100,000 ounces of gold per year, with production to begin in late 2012 or early 2013. (Reporting by Amruta Sabnis in Bangalore; Editing by Viraj Nair)