PERTH (miningweekly.com) – Junior Venturex Resources has secured a A$2-million unsecured loan from shareholder Northern Star Resources to secure Environmental Protection Authority (EPA) approvals for its Sulphur Springs copper/zinc project, in Western Australia.
The company on Friday said that the unsecured loan, which would have a 12-month term, would accrue interest at a rate of 8% a year from the date of advance, and will be payable in cash.
The loan could also be repaid in Venturex shares at the election of Northern Star.
“Northern Star’s support through this bridging loan will allow us to finalise the EPA approval in the first quarter of 2020 and progress project implementation and development strategies, without having to dilute existing shareholders,” said Venturex executive director Anthony Reilly.
“We are extremely grateful for their support, which will ensure that Venturex is well placed to realise its objective of becoming a significant new midtier Australian base metals producer.”
A 2018 definitive feasibility study estimated that the Sulphur Springs project would require a capital investment of A$169-million to develop a 1.25-million-tonne-a-year operation, producing some 65 000 t/y of 25% copper concentrate, and 75 000 t/y of 50% zinc concentrate over a mine life of more than ten years.