Galena draws down more Taurus funding
PERTH (miningweekly.com) – ASX-listed Galena Mining has completed the second drawdown of $35-million under an existing debt facility to fund production from the Abra base metals project, in Western Australia.
Galena in 2010 secured a $110-million debt facility from Taurus Funds Management, and last year drew down an initial $30-milion in funding to start development of the Abra project.
“The receipt of the $35-million second drawdown from Taurus is another milestone on our pathway to first commercial production of high-value, high-grade lead/silver concentrate from Abra in the first quarter of 2023. We appreciate Taurus’ continued support for us as our debt funding partner,” said Galena MD Tony James.
Funding of $45-million remains undrawn under the facility, consisting of $35-million in project financing and $10-million in a cost overrun facility.
The Taurus debt facilities are secured against Abra project assets and over the shares that each of Galena and Toho own in the Abra joint venture vehicle, and additional drawdowns remain subject to satisfaction of customary conditions precedent.
The 1.2-million-tonne-a-year Abra project will require a capital spend of A$170-million to develop, and will produce about 95 000 t/y of lead and 805 000 oz of silver over a 16-year mine life.
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