PERTH (miningweekly.com) – ASX-listed EQ Resources is fully funded for the development of its Mt Carbine expansion project.
The company on Monday reported that it had secured commitments from its joint venture and offtake partner German Cronimet Group, as well as from its director Zhui Pei Yeo for A$5.7-million in additional funding.
This funding was in addition to the A$6-million recently awarded by the federal government under its Critical Minerals Accelerator Initiative.
A 2021 bankable feasibility study into the expansion project estimated that it would require a capital investment of some A$19-million and contemplated a 12-year operation, which focuses on an openpit development of the Andy White deposit, supplemented with processing of 12-million tonnes of low-grade stockpiled ore.
The openpit ore would be processed in the third and fourth year of operations, and would produce operational pre-tax cash flows of A$38-million and A$95-million respectively. The project would also have a net present value of A$1315-million and an internal rate of return of 154%.
EQ Resources on Monday said that the funding securing would fully fund the Mt Carbine plant expansion.
These funding facilities close out our capital financing effort for the Mt Carbine plant expansion. Cronimet has signed a multi-year offtake contract with a ‘tier 1’ customer, with significant prepayment which Cronimet will pass through to the project one-to-one. It is great to see our concentrate is being well received by end-users,” said EQ Resources CEO Kevin MacNeill.
“Total cost of capital for the upcoming capital is less than 3%, very competitive for such a specialised operation to produce a much sought after concentrate for the export market. Upon completion of the early works, Mt Carbine will be employing more than 70 workers drawn largely from the nearby townships, working with top quality local contractors and utilising the services of businesses in the Mt Molloy and Mareeba districts.”