Saloro, the operator of the Barruecopardo tungsten mine, in Spain, has entered into a €10-million, 12-month term loan facility with Oaktree Capital Management.
London-listed Ormonde holds a 30% joint venture interest in Saloro with Oaktree owning the balance.
The new loan provides Saloro with additional liquidity support as it establishes mining operations on the main orebody at Barruecopardo.
Saloro can draw from the new term loan on an as required basis, in tranches of at least €500 000, over the loan period.
Interest on the new term loan will be capitalised in full, at a rate of 18% a year on drawn funds, with a 3%-a-year commitment fee accruing on undrawn amounts.
The initial nine-year openpit mine will produce 260 000 metric tonne units of tungsten trioxide at steady state.