Name of the Project
Fort Cady borate and lithium project.

Location
Southern California, US.

Project Owner/s
American Pacific Borate and Lithium (ABR).

Project Description
An enhanced definitive feasibility study (DFS) on the Fort Cady project has proposed splitting Phase 1 of the project, which involves the delivery of about 82 000 t/y of boric acid and 36 000 t/y of sulphate of potash (SoP), into Phase 1A and Phase 1B to conserve costs. Phase 1A will target the production of 6 000 t/y of boric acid and 40 000 t/y of SoP, while Phase 1B will increase boric acid production to 90 000 t/y using the knowledge gained from the initial 6 000 t/y operation.

Phases 2 and 3 of the project remain the same as in the DFS. Phase 2 will increase pro­duction to 245 000 t/y of boric acid and 73 000 t/y of SoP, while Phase 3 will produce 408 000 t/y of boric acid and 109 000 t/y of SoP.

Based on the three-phase approach, the project has a mine life of about 21 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Phase 1A will have an estimated net present value (NPV), at a 10% discount rate, of $224.7-million and an internal rate of return (IRR) of 58.3%. The addition of Phase 1B will increase the NPV to $385.3-million, while the IRR will reach 36.4%.

Capital Expenditure
By splitting Phase 1 into two phases, pre­production costs for the project have been reduced from $138-million in the December DFS to $36.8-million for Phase 1A and $111.38-million for Phase 1B in the enhanced DFS. Phase 2 will cost $191.44-million and Phase 3 $186.55-million.

The total cost of the project has increased from an estimated $516.2-million in the DFS to $526.21-million in the enhanced DFS.

Planned Start/End Date
Construction of Phase 1 is to start in the fourth quarter of 2019, subject to financing and permitting.

Latest Developments
APR has signed a term sheet for $45-million in project funding to finance Phase 1 A of its Fort Cady borate project.

The project finance secured with Amvest Capital Mining Opportunities includes a $37-million construction term loan and an $8-million cost overrun facility.

In addition, the company has also agreed to issue Amvest with a $2-million convertible note, which will have a 24-month term, and which will fund early payments for long-lead items and front-end engineering design at Fort Cady.

The company’s focus continues to be on the completion of engineering to allow for construction at Fort Cady to start in the current calendar year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
ABR, tel +1 442 292 2120.