Kerr is targeting the December quarter next year for first production from Copperstone, slated as a circa-40,000oz per annum producer at a US$875/oz all-in sustaining cost. It has current measured, indicated and inferred resources of about 422,000oz at more than 7gpt.

Kerr expects to deliver Pandion about 95,000oz over 40 months, with no gold deliverable in the first 22 months. The New York-based mine financier will get the gold at a discount to the prevailing market price at the time and can convert up to 10,000oz of gold into C40c Kerr shares.

The gold junior says it will sell all other production from Copperstone at market prices, and can buy out or terminate the deal.

It will receive the finance in two tranches of US$19.6 million and $8 million, the first targeted for next month.

"After careful review of the financing options available, we are pleased to select Pandion Mine Finance as our funding partner," Kerr CEO Claudio Ciavarella said.

"We believe the terms of this financing are competitive and create value for our shareholders.

"With this funding arrangement now in place, we are highly focused on continuing to create shareholder value and are now able to turn our attention to achieving our next targets - production in 2019, expansion of resources and mine life."

Kerr Mines' shares are up 10% since Monday at C22c, capitalising the company at C$55 million.