PERTH (miningweekly.com) – ASX-listed Iron Road on Thursday reported that the maturity date of its A$5.4-million loan facility from shareholder Sentient Global Resources Fund, has been extended until the end of June this year.
“We appreciate the ongoing support from our major, long-term shareholder Sentient. Sentient’s financial backing and their invaluable contributions to the recently revised Central Eyre iron project (CEIP) development strategy are key to renewing interest with potential investment partners in the project,” said Iron Road MD Andrew Stocks.
The Sentient loan facility earns a zero rate interest, and did not attract any fees.
Iron Road recently unveiled plans to halve the size and cost of its CEIP, in South Australia, driven by a clear industry preference to maximise capital efficiency.
As a result, annual targeted output has been reduced from the 24-million tonnes a year previously considered, to 12-million tonnes a year, over an initial 22-year mine life.
The project’s total capital costs have also been reduced by about 50%, to $645-million from $1.3-billion, while the mine operating costs have remained in line with the 2017 estimations of $23.8/t iron concentrate.