Weatherly completes $80m loan drawdown to develop Tschudi mine
JOHANNESBURG (miningweekly.com)– Aim-listed Weatherly International said on Monday it completed its first drawdown of the $80-million tranche B loan facility provided by Orion Mine Finance for the development of its Namibia-based Tschudi copper project.
Tranche B was repayable over six-and-a-half years, with an initial two-year repayment holiday, attracting an interest rate of 7% over the London Interbank Offered Rate, which was set at a minimum of 2%.
The copper producer also had a project-cost overrun facility of a further $8-million in tranche C, if required.
CEO Rod Webster said in a statement that the drawdown of tranche B would allow the group to bring Tschudi into production in the second quarter of 2015.
Tschudi, an openpit copper mine with an expected 11-year mine life, should produce 17 000 t/y of copper cathode at life-of-mine cash costs of $1.94/lb.
“This is an important milestone in relation to us achieving our objective of creating a mining business capable of producing 25 000 t/y of copper,” he commented.
The company had also finalised an agreement with Namibia power utility NamPower for the supply of 8 MW of installed power capacity.
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