Good news for Red Eagle Mining (RD.V) as the company announced it has received the long-awaited environmental license from Corantioquia. This was the final piece of the puzzle and Red Eagle is now allowed to start building the mine.

Despite the recent low gold price, we don’t think securing funding for this mine will be difficult as the IRR is quite high, even at a gold price of just $1100/oz. On top of that, the Colombian Peso has lost approximately 35% of its value in the past few months which will undoubtedly reduce both the capital expenditures and the operating expenditures so we expect the financial performance of the mine to be better than expected.

We will be visiting the Santa Rosa project next week and will release a site visit report shortly thereafter.

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> Click here to read our most recent report on Red Eagle Mining

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

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