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- Base metal producer New Century Resources (NCZ) is expanding existing working capital facilities with Värde Partners from A$60 million to $100 million
- The terms of the additional $40 million represent a significant cost reduction compared to the originally proposed facility back in February
- Funds will be used for the acceleration of New Century’s operations over the 2020 financial year
- So far, the company’s December quarter performance and guidance remains on track for record metal production and direct costs
- New Century Resources is up 4.26 per cent with shares trading for 24.5 cents each
New Century Resources (NCZ) has executed a binding term sheet to expand existing working capital facilities with Värde Partners from A$60 million to $100 million.
Värde Partners is a global alternative investment firm and, since its inception, has invested over $68 billion and manages over $14 billion on behalf of a global investor base.
The terms of the additional $40 million represent a significant reduction in cost compared to the originally proposed junior facility in February this year.
This 2.5-year facility carries an interest rate of 8 per cent per annum and first ranking security over all Century assets. It also includes a limited-term silver royalty of 10 per cent limited to four years, as well as 25 million options at $0.25 per share for a 3.5-year term.
Funds will be used to ensure there’s appropriate working capital during the acceleration of New Century’s operations over the course of the 2020 financial year.
So far, the company’s December quarter performance and guidance remain on track for record metal production and C1 costs (27,000 tonnes – 33,000 tonnes zinc metal and C1 costs of US$0.87/lb to US$0.98/lb, payable metal including treatment charges).
The base metal producer also reported the commissioning of the recently delivered scavenger circuit is continuing to progress well. The plant is now stabilised and operations are regularly delivering daily metal production record.
Currently, weekly performance operations are tracking 52 per cent zinc recovery and an 8.8 million tonnes per annum (Mtpa) mining rate.
The third upgrade for a 12Mtpa remains on track to come online in March 2020.
New Century Resources is up 4.26 per cent with shares trading for 24.5 cents each at 1:53 pm AEDT.
