PriceSensitive

Mincor Resources (ASX:MCR) $55M syndicate facility set to fuel nickel operations

Materials
ASX:MCR
27 March 2021 02:00 (AEST)

Source: Mincor Resources

Mincor Resources (MCR) has executed a $55 million syndicated facility agreement in a push towards production at its Kambalda Nickel Operations.

According to Mincor, the cash injection means the development of Kambalda Nickel is now fully-funded through to production, with the remaining equity component having previously been raised and contributed.

Draw-down on the facility is subject to customary conditions precedent and is not required until later this year.

After committing an initial equity contribution of $60 million back in the September 2020 quarter, Mincor will need to source an additional $35 million at the corporate level to provide funding for ongoing exploration and resource expansion.

A definitive feasibility study for the project outlined an initial five-year operation with a pre-production CAPEX of $68 million and a peak funding requirement of $97 million.

The project is forecast to produce 71,000 tonnes of nickel and 5000 tonnes of copper on a life-of-mine basis, with peak annual nickel-in-concentrate production of more than 16000 tonnes per annum.

Mincor Resources closed the day up 1.04 per cent at 97 cents per share.

Related News