Mincor executes USD 55M SFA to underpin KNO development
01 April 2021
Mincor Resources NL (Mincor) announced that it has taken another important step towards the commencement of high-grade nickel sulphide production at its Kambalda Nickel Operations (KNO) in Western Australia after executing the USD 55M Syndicated Facility Agreement (SFA) with its Tier-1 banking syndicate.
The execution of the SFA and associated documentation with global banks BNP Paribas and Société Générale (Financiers), means that the development of the KNO is now fully-funded through to production.
Mincor has already placed USD 60M of its existing cash reserves into a Proceeds Account to fund ongoing mine development and construction activities at the KNO, leaving approximately USD 35M at the Mincor corporate level to fund its corporate costs, ongoing exploration and resource expansion activities, and also to provide general working capital.
The Definitive Feasibility Study outlined an initial 5-year operation with a pre-production CAPEX of USD 68M and a peak funding requirement of USD 97M. KNO is forecast to produce 71kt of nickel and 5kt of copper on a life of-mine basis, with peak annual nickel-in-concentrate production of >16ktpa at a forecast LOM unit cost of US$2.35/lb (A$3.36/lb).