JOHANNESBURG (miningweekly.com) – Zambia-focused mineral processing business, BMR Group has entered into a $5.2-million project construction and trade finance facility with African Compass International, a private South African group engaged in mining, energy and agribusiness.
Through the facility, Aim-listed BMR and its Enviro Mining subsidiary, will receive up to $4.2-million for use at its Kabwe plant.
It also provides for the drawdown of $1-million to satisfy the consideration payable to exercise the option agreement with Bushbuck Resources for the acquisition of its Star Zinc large-scale prospecting licence 19653-HQ-LPL in Zambia.
Drawdowns under the facility, which is interest free but involves an arrangement fee of $100 000, are to be repaid within 12 months of the final milestone – the commissioning of Kwabe.
BMR chairperson Alex Borrelli said the facility represented a “defining moment” for the company, as the financing underpinned its planned cost of the Kabwe plant.
He added that the company remained on track to commission the plant in 2017.