PERTH (miningweekly.com) – Base metals developer New Century Resources has secured a $45-million debt facility to fund the restart of its Century zinc mine, in Queensland.
The debt facility, secured from global resources fund Sprott Resource Lending, will have a 10% a year interest on a three-year fixed term.
“New Century is very pleased to have secured this significant debt financing facility on attractive terms through Sprott, who are widely recognised as one of the world’s leading providers of finance to the natural resource sector,” said New Century executive chairperson Evan Cranston.
“This facility will allow the team to expedite its activities for the targeted restart of the Century zinc mine, with the funding used for the commissioning process and achievement of first production in 2018.”
The Century mine was the third-largest zinc mine in the world prior to its closure in 2016.
New Century is currently considering a tailings operation at the project area, to treat the 78.9-million tonnes of resource at the project, which is estimated to contain some 2.38-million tonnes of zinc, 370 000 t of lead and 31.5-million ounces of silver.
The restart feasibility is on track and is targeted for completion by November this year.
Meanwhile, the completion of the debt facility remained conditional on the completion of legal and technical due diligence, and the completion of formal documentation.