PERTH (miningweekly.com) – Nickel developer Panoramic Resources has completed an initial $30-million drawdown of its $45-million secured loan facility from Trafigura Group, to suport first nickel/copper/cobalt shipments from the Savannah nickel project, in Western Australia.
The loan facility comprises two tranches, the first tranche of which is a five-year prepayment loan facility totalling $30-million which is now drawn. The second tranche is a $15-million revolving credit loan facility, which remains undrawn.
“This drawdown is another important milestone in the restart of the Savannah nickel project. The company is now fully funded into operations from a combination of existing cash reserves and the funds received from this drawdown,” said MD and CEO Victor Rajasooriar.
“Trafigura has been highly supportive of the restart and commissioning of operations at Savannah and is an important business partner in providing the $45-million loan facility and a five-year nickel/copper/cobalt concentrate offtake agreement from February 2023.
“I am also pleased with the progress we are making on the restart of operations. Importantly, the project remains on budget and on schedule for the first shipment of nickel/copper/cobalt concentrate in December 2021.”
As a result of the drawdown, the five-year nickel/copper/cobalt concentrate offtake agreement for the period February 2023 to February 2028 with Trafigura is now unconditional. This agreement commences on the expiry of the existing offtake agreement with Jinchuan.