Avanti closing in on project finances

Finalizing finance sourcing from several investment groups will be key to getting Kitsault mine north of Terrace up and running on time

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.

 

Just Posted

Nearly $500,000 available for internships with northern B.C. First Nations governments

Funds announced through partnership with Northern Development and Government of Canada

Terrace husband and wife honoured for saving each other’s lives

BC Ambulance presented each a Vital Link Award for separate incidents of CPR

$15 million spent on cancelled transmition line

BC Hydro had already spent approximately $15 million on planning a new… Continue reading

College buys a yurt to boost student success

Round tent-like structure part of college instructional shift

Council supports lobby for fair share of cannabis tax revenue

The City of Terrace is throwing its support behind a West Kelowna… Continue reading

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

B.C. out of the running for Amazon’s next headquarters

Toronto is the only Canadian city left in the running despite the province backing Metro Vancouver’s bid for new Amazon headquarters

B.C. hockey player nominated for Hobey Baker Award

Myles Powell is a forward at Rochester Institute of Technology

Post interest rate hike debt tips

What to do about your debt and mortgages after the interest rate hike

Foreign workers sleeping in Alberta Burger King basement

Alberta Health Services said its inspectors found foreign workers sleeping in the basement of the Lethbridge restaurant

Court application halts release of bread price-fixing documents

Bread price-fixing documents won’t be unsealed Thursday, Loblaw says

Pharrell and N.E.R.D to headline NBA All-Star halftime show

11-time Grammy winner Pharrell and his hip hop-rock band N.E.R.D. will headline the halftime show at the 2018 NBA All-Star game in Los Angeles

Heritage Minister wants zero tolerance for harassment in entertainment industry

Heritage Minister Melanie Joly had two meetings to discuss harassment in the film, TV and theatre worlds

Newly freed Diab wants reforms to Canada’s ‘lousy’ extradition law

French authorities dropped terrorism charges against Hassan Diab who was suspected of taking part in an attack in Paris in 1980

Most Read