Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed New Century Resources has secured up to A$100-million in working capital facilities from investment firm Varde Partners, as the company restarts its Century zinc operations, in Queensland.
The funding will consist of a A$60-million secured facility, which has been approved and is available for drawdown, and a A$40-million unsecured facility, which remains subject to performance hurdles.
The A$60-million senior debt has a two-and-a-half-year term and carries an 8% a year interest rate, while the junior debt has a three-year term and carries a 10% a year interest rate.
“New Century is excited to have secured these working capital facilities with a global investment firm of the calibre of Varde,” said New Century MD Patrick Walta.
“The facilities put the company in a strong financial position, enabling it to focus on continuing to achieve its ramp-up goals at Century.”
While the company has made strong progress in the ramp-up to date, the New Century board has determined that the additional working capital was a prudent measure to ensure the company maintained a strong cash buffer to complement the growing cashflow from concentrate shipments.
Century has an estimated production capacity of 264 000 t/y zinc and three-million ounces a year silver over an initial mine life of just over six years.