BIRD'S EYE VIEW The proceeds of the financing agreements will be used to advance the first phase of Platreef’s mine development, with commercial production expected in 2024
TSX-listed Ivanhoe Mines’ South African subsidiary, Ivanplats, has concluded stream financing agreements with Orion Mine Finance and Nomad Royalty Company for a $200-million gold streaming facility and a $100-million palladium and platinum streaming facility for its Platreef palladium/rhodium/platinum/nickel/copper/gold project in South Africa’s Limpopo province.
The proceeds will be used to advance the first phase of Platreef’s mine development, with commercial production expected in 2024.
The definitive feasibility study for Platreef’s phased development plan, which will provide updated production forecasts for the initial mine and subsequent expansion, is nearing completion with its release expected in first quarter of 2022.
Ivanplats has also signed documents relating to offtake arrangements for 100% of Platreef's Phase 1 platinum-group metals (PGMs) concentrate production, which is expected to exceed 40 000 t/y containing six payable metals – palladium, rhodium, platinum, nickel, copper and gold.
The offtake arrangements are with Northam Platinum and Heron Metals, in a joint venture in which Singaporean-registered company Trafigura has a majority shareholding.
The terms of the proposed offtake with Heron Metals / Trafigura are based on a non-binding indicative term sheet and are subject to negotiation and execution of definitive documentation for a concentrate sales agreement.
“The stream financing agreements, which represent a small fraction of Platreef’s incredible resource base, and accompanying offtake arrangements are critical milestones in the progression to commercial production for Ivanplats.
“They provide funding for a significant portion of the mine's initial phase of development, as well as a long-term home for our PGM, nickel and copper concentrates," says Ivanhoe Mines president Marna Cloete.
Moreover, she says Platreef has concluded a three-year collective agreement with its employees that “values and respects their expertise, their contributions during the pandemic and their role in building the world's next great mine”.