PERTH (miningweekly.com) – The Northern Territory government, through its Local Jobs Fund (LJF) has offered to invest A$5-million into ASX-listed Core Lithium’s Finniss project, in the form of a low-cost business investment concessional loan.
Core has received a non-binding indicative term sheet for the concessional finance facility, following an assessment process by the LJF investment committee.
“To ensure the territory rebounds strongly from Covid-19, the Northern Territory government is investing in projects that will help our economy grow and create jobs for territorians,” said Chief Minister Michael Gunner.
“We are making the territory Australia’s comeback capital, and this job-creating project can be a key part of that.”
The facility will have an 36-month term and a bank bill swap rate plus 2% interest rate.
Core told shareholders that the finance facility will contribute to the lower startup capital funding needs, and that the concessional interest rates will reduce the overall cost of finance.
“We are delighted to have the support of the Northern Territory government in the offer of a concessional finance facility, which contributes to the transition from developer to miner,” said MD Stephen Biggins.
“The Northern Territory government’s proposed financial commitment is a recognition of the value of the near development-ready Finniss lithium project and its contribution to reducing global emissions and the rebound in economic growth in the territory.”
A previously completed prefeasibility study into the Finniss project estimated a preproduction capital requirement of A$53.5-million to develop a one-million-tonne-a-year operation producing 225 000 t/y of lithium concentrate.
Core is aiming to complete offtake arrangements and have the project construction ready in 2020, ahead of sourcing debt and equity to achieve financial close.