Funding found for Fort Cady
PERTH (miningweekly.com) – ASX-listed American Pacific Borate and Lithium has inked a term sheet for $45-million in project funding to finance Phase 1 A of its Fort Cady borate project, in southern California.
The $36.8-million Phase 1 A project will target the production of 6 000 t/y of boric acid and 40 000 t/y of sulphate of potash.
American Pacific on Tuesday said that the project finance secured with Amvest Capital Mining Opportunities included a $37-million construction term loan and an $8-million cost overrun facility.
“We are delighted to have signed a term sheet with a specialist mining New York-based investor for a facility to substantially debt fund the first phase of our Fort Cady borate project,’ said American Pacific MD and CEO Michael Schlumpberger.
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 and design at Fort Cady.
“The convertible note and term sheet confirm our view that we have a very exciting project with exceptional financial metrics, which will produce two commodities with compelling market dynamics,” said Schlumpberger.
He noted that the company’s focus continues to be on the completion of engineering to enable construction at Fort Cady to start in the current calendar year.
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