PERTH (miningweekly.com) – Lithium developer Altura Mining has secured a $110-million senior debt facility to fund the construction and commissioning of its Pilgangoora project, in Western Australia.
The company has signed a loan note subscription agreement with US- and Swiss-based investment management groups Magy, Pala Investments and CarVal Investors to raise the funds.
The funding will be provided in two tranches, with the first tranche of $33-million to be settled by August 4, and the second tranche before September 27.
A previously completed definitive feasibility study estimated that the project will have a yearly ore feed rate of 1.54-million tonnes to deliver 219 000 t/y of spodumene concentrate containing 6% lithium, with estimated life-of-mine cash costs of A$316/t of spodumene concentrate.
The project will cost an estimated A$139.7-million to develop.
Altura has previously entered into a binding five-year offtake agreement for a minimum of 200 000 t/y of spodumene to be produced from the mine, which will provide certainty for both investors and the financiers, the company said.