PERTH (miningweekly.com) – Base metals developer Galena Mining has received a A$10-million cash investment from international smelting company Toho Zinc as part of its greater A$90-million investment.
Galena in January this year struck an agreement with Toho which would see the smelting company gain a 40% interest in Galena subsidiary Abra Mining, which holds the Abra base metals project, in Western Australia.
With the A$10-million tranche payment now received, Toho’s interest in Abra Mining has reached 13.33%, with Toho having paid A$30-million since the agreement was executed.
The A$10-million tranche payment was triggered by the successful completion of a definitive feasibility study, which estimated that Abra would produce some 95 000 t/y of lead and 805 000 oz of silver over a 16-year mine life.
The 1.2-million-tonne-a-year Abra project will require a capital spend of some A$170-million to develop, up from the A$154-million estimated in the 2018 prefeasibility study.
Galena on Friday noted that the remaining A$60-million investment from Toho is payable on the confirmation of project financing debt for the Abra project.