News

Avanti closing in on project finances

The company which wants to build a molybdenum mine at Kitsault on the north coast is closing in on the financing it needs for the project.

Avanti Mining has a broad agreement with six international lenders which it hopes will result in loans of (US)$612 million leading to a two-year construction schedule beginning next spring.

Avanti is projecting a total cost of (Canadian) $812 million and expects the rest will be made up of equity financing, finding partners and selling silver that’s also contained in the Kitsault ore body. The agreement with the six lenders, one of which is the Canadian Export Development Bank, is contained in what’s called a mandate letter and the lenders are now examining the project in detail.

“Final credit approval for the [financing] facility is expected in September 2014,” said Avanti president Gordon Bogden in a release.

Each of the lenders is involved based on sales of the mine’s ore or equipment being purchased for operations.

While the Canadian Export Development Bank’s mandate is to assist companies in developing export productions, the Caterpillar Financial Services Corporation involvement will help finance Avanti’s purchase of Caterpillar-constructed equipment for the mine. The Korea Development Bank will lend money based on a sales agreement Avanti has to sell product to a South Korean steel firm.

The remaining three lenders, European UniCredit Bank AG, Japanese Mizuho Bank and European BNP Paribas are participating through a federal German loan guarantee made possible because of an agreement Avanti has to sell its product to the German firm of ThyssenKrupp.

“The Kitsault project moves significantly closer to a positive production decision,” because of the mandate letter, said Bogden.

 

We encourage an open exchange of ideas on this story's topic, but we ask you to follow our guidelines for respecting community standards. Personal attacks, inappropriate language, and off-topic comments may be removed, and comment privileges revoked, per our Terms of Use. Please see our FAQ if you have questions or concerns about using Facebook to comment.

You might like ...

B.C.-only wines to come to some grocery stores
 
Hunters protest shift favouring non-residents
 
Virk shuffled to new job after Kwantlen flap
MLA sues political opponent for incident at 2013 all candidates forum
 
Terrace municipal candidate passes away
 
LNG push holding up northwestern B.C. treaty talks
Site C dam construction to start next summer
 
New autism centre to open in 2016
 
City active living manager retires

Community Events, December 2014

Add an Event


Read the latest eEdition

Browse the print edition page by page, including stories and ads.

Dec 19 edition online now. Browse the archives.