PERTH (miningweekly.com) – Nickel developer Mincor Resources has executed a A$55-million syndicated facility agreement with a tier 1 banking syndicate to underpin the development of its Kambalda nickel operations, in Western Australia.
Draw down of the facility agreement is subject to customary conditions precedent, and is not required to occur until late in the September quarter of this year.
Mincor said on Friday that the start of nickel operations at Kambalda is now fully funded, with the company already having placed A$60-million of its existing cash reserves into the proceeds account to fund ongoing mine development and construction activities, leaving A$35-million at the corporate level to fund corporate costs, ongoing exploration and resource expansion activities, and to provide general working capital.
“The achievement of financial close is another significant milestone in Mincor’s journey to restart mining at Kambalda and to become a clean, efficient and modern nickel sulphide producer ready for the new era of nickel demand from the electric vehicle and renewable energy sector,” said Mincor MD David Southam.
“We expect first drawdown under the A$55-million finance facility to occur late in the September quarter. In the meantime, the equity funds in the proceeds account will continue to be used to meet current expenditure.
“Development at Cassini and Northern Operations is making great progress, with our optionality teams fully mobile and a strong focus on advancing underground development safely and efficiently. As an example, we are approaching 800 m of mine development at Cassini,” Southam said.
The Mincor board in September last year approved the A$68-million development of the Kambalda project, with the project forecast to produce 71 000 t of nickel and 5 000 t of copper over a five-year mine life.
Mincor and BHP Nickel West have agreed on terms for supply of grid power for the Cassini operations, with the company telling shareholders that the movement to grid power represents a change from the definitive feasibility study, where diesel generation was assumed.
The switch is expected to result in savings of between A$7-million and A$10-million over the next five years.
- [Editor:Catherine Ren]