Linden Gold Enters Toll Processing and Debt Facility Agreement With St Barbara


Linden Gold has established both a Toll Processing Agreement and a $16 million term loan facility agreement (Debt Facility Agreement) with St Barbara Limited.

Jointly, the agreements deliver an immediate pathway to production at Second Fortune in the first half of 2021.

LGA’s General Manager – Operations, Andrew Rich commented,

“LGA is very pleased to have agreed terms and partnered with St Barbara to redevelop LGA’s Second Fortune Gold Project and unlock what we see as a potentially very valuable and high-grade gold project.”

“We expect Second Fortune will deliver many years of high-grade ore production from current reserves with opportunities to grow the project from multiple proven high-grade exploration targets, both in-mine and regionally.

Thank you to St Barbara for committing to this partnership, which aims to deliver additional throughput to Gwalia’s mill and support further exploration in the Gwalia-Second Fortune region.”

The agreements are expected to come into effect immediately, with key points outlined below:


Under the TPA, LGA will deliver a minimum of 300,000 tonnes, but up to 390,000 tonnes of ore to St Barbara’s Gwalia processing facility (Gwalia) over a 22-month period where LGA’s ore will be toll processed by St Barbara.

The term of the TPA can be extended by mutual agreement. LGA is required to deliver its first parcel of ore to Gwalia in March 2021 for processing in April 2021.


Under the Debt Facility Agreement, St Barbara has provided LGA with a $16 million term loan debt facility to fund the redevelopment of Second Fortune and guarantee ore supply to Gwalia over the term of the TPA.

The Debt Facility Agreement allows funds to be drawn down in stages and can be repaid at any time without restriction or financial penalty. The Debt Facility Agreement includes an interest rate, loan covenants and security customary for a facility of this type.


The Second Fortune Gold Mine is a West Australian project located approximately 220km northeast of Kalgoorlie and 109km south of Laverton.

Most recently prior to Linden Gold’s acquisition of Second Fortune, the mine underwent upgrades to infrastructure and early mechanised mine development activity at the hands of former operators, Anova Minerals in 2017.

The redevelopment of Second Fortune since Linden Gold’s acquisition has significantly advanced the project, with dewatering and underground rehabilitation completed during the December 2020 quarter.

Since the completion of these works, LGA awarded a contract for current and ongoing underground mining services to Mako Mining, a specialist narrow vein underground mining contractor.

Mining is now officially underway – a significant milestone for the company – and with works progressing to the anticipated schedule, the Project is meeting its first ore production target, set for March 2021.