PERTH (miningweekly.com) – Dual-listed Equinox Minerals has closed its $400-million corporate loan facility with four commercial banks.

The ASX- and TSX-listed miner said in a statement on Wednesday that the corporate facility would be used to repay certain existing senior and subordinated project loan facilities to wholly owned subsidiary, Lumwana Mining Company (LMC) for the development of the Lumwana copper mine, in Zambia.

The key elements of the corporate facility were a three-year, $220-million term loan with quarterly principal and interest repayments, and a five-year, $180-million revolving facility that Equinox is allowed to either repay in full or redraw in full, up to the facility limit, over the term.

Equinox noted that the new corporate facility was less restrictive than LMC’s existing project debt facilities.

The benefits include the removal of any ‘cash sweep’ provisions and the lack of any mandatory hedging requirements, and the company was no longer required to maintain its undrawn $45-million cost overrun facility.

Equinox president and CEO Craig Williams said that the provision of the new corporate facility was in recognition of the growing strength of the Lumwana copper mine and of the Equinox group.

“This new facility will provide a much more flexible basis for management of Lumwana debt and future growth,” he added.

Lumwana hosts a proven and probable mineral reserve of 321-million tons of ore grading 0,73% copper.

At full capacity, the mine would process in excess of 20-million tons of ore a year.

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