Revett Minerals (RVM.TO, NYSEMKT:RVM) has announced an update on the status of the Troy Mine in Montana, USA. As further dewatering has revealed more structural damage to the haulage route, the company will now change plans and construct a new decline into the North C-Beds and I-Bed. This approach will take at least 12 months and cost approximately $12M.

Revett is waiting for the MSHA-approval to start constructing the decline, and we hope this approval will be issued shortly so the company can break ground before the winter sets in. Additional financing will probably be needed, but we expect a small debt offering or pre-paid copper offtake agreement to be sufficient to cover the expenses.

This is obviously a major setback and it’s now extremely unlikely we’ll see any production before Q1 2015. Fortunately Revett Minerals kept all the cash it generated at Troy over the past few years on its balance sheet, so there is no immediate need to find a financing deal.

> Click here to read the press release

Disclosure: The author holds a long position in Revett Minerals. Revett is a sponsor of the website. Please see our disclaimer for current positions.

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