TORONTO (miningweekly.com) – TSX- and ASX-listed Equinox Minerals has commitments from Standard Bank, Standard Chartered Bank, the Industrial and Commercial Bank of China and NBP Paribas for a new $400-million corporate loan facility, the copper-miner reported on Monday.

Equinox's main asset is the Lumwana mine, in Zambia, which started production in December 2008.

The company said that it will use the new facility to repay its existing senior and subordinated project debt facilities that were provided in 2006 for the development of the Lumwana mine.

“The provision of this loan facility by a core group of international commercial banks is recognition of the strength of the Lumwana copper mine and the long-term prospects of the Equinox group,” CEO Craig Williams said in a statement.

“Refinancing our existing project debt facilities with a corporate loan reflects our transition from a developer to an operator of a world-class mining asset.

“Our company will benefit from the increased flexibility in the structure of this facility and is now very well placed to move to the next phase of its growth.”

The $400-million corporate facility is subject to the execution of documentation and several conditions.

Equinox said that it expects to achieve financial closing during March.

The facility includes a three-year $220-million term loan and a five-year $180-million revolving facility.

The company can also request an increase in the amount available under the term facility by $80-million and/or the revolving facility by $100-million, subject to the approval of the lenders.

There are no mandatory hedging requirements attaching to the facility.

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