Miners borrow to advance Kitsault mine

THE COMPANY wanting to open a molybdenum mine at Kitsault is borrowing $40 million to finance work leading up to the start of construction.

  • Nov. 11, 2013 8:00 p.m.

THE COMPANY wanting to open a molybdenum mine at Kitsault on the north coast is borrowing $40 million to finance work leading up to the start of construction.

Avanti will use some of the money to rebuild a bridge leading to Kitsault so that it can better handle the increased truck traffic resulting from construction traffic, says company president Mark Premo.

And it will also provide BC Hydro with a financial surety so it can then re-energize a power line going into the location that will service the moly mine.

Avanti is now working on obtaining construction and related permits following provincial environmental approval granted this spring.

It also is anticipating federal approval by year’s end.

The $40 million being borrowed is just over half of what the company has already spent in determining the operational and financial viability of its project and in steering it through various governmental economic and environmental assessments since it bought the property in 2008.

The current bridge leading to Kitsault has Glulam stringers and a timber deck while the new one will have steel beam girders and a concrete deck.

“The province is responsible for the replacement [and] Avanti is paying for the bridge replacement. However, the bridge will be the property of the province,” said Premo.

Work on the BC Hydro line is needed to re-energize it to 138 kilovolts from its current 25 kilovolt capacity.

Premo said that involves work at BC Hydro’s New Aiyansh substation  at several places along the line leading from the substation to the Kitsault mine site.

BC Hydro will do the work and the financial surety, a line of credit, is released as Avanti purchases power, Premo added.

Also to be financed with the loan is detailed engineering for the mine to reduce capital cost risk, preparing tender documents for contract awards, installing communications to support construction, making a deposit on equipment for the tailings dam, expanding Avanti’s Kitsault camp, expanding the company’s management team, completing permitting and paying for banking and other financial expenses.

Avanti will need close to $1 billion to build its mine and plans on a combination of borrowing and selling equity to hit that target.

In the meantime, the Nisga’a Lisims Government is suing the province, alleging it  failed to properly assess the environmental impacts of the project on water quality, marine habitat and human health, as well as the social, economic and cultural effects on the Nisga’a citizens.

Kitsault is not within Nisga’a treaty lands but is within Nisga’a traditional territory.

Just Posted

Global climate strike makes its stand in Terrace

Approximately 50 people rallied in front of city hall to bring awareness to climate change

Bear shot by police in Stewart neighbourhood, residents say

Gunshots were heard in the dark, alarming and angering neighbours

Skeena Voices | Walking between two parallel roads

Lynn Parker found knowledge a powerful tool for reconciliation

Terrace Community Forests harvests $750k for City of Terrace

Money was given in recognition of National Forest Week

Coast Mountain College opens new health and wellness centre in Terrace

College’s eventual goal is to open up the gym and programming for public use

PHOTOS: Young protesters in B.C. and beyond demand climate change action

Many demonstaers were kids and teens who skipped school to take part

Oak Bay father’s testimony at murder trial like plot of ‘bad low-budget movie:’ Crown

Crown alleged Andrew Berry’s ‘entire story of Christmas Day is a lie’

B.C. truck drivers to face higher fines for not using winter tire chains

As of Oct. 1, not using chains on the highway when required could net you a $598 ticket

Singh campaigns in Toronto, May in Winnipeg, as Liberal and Tory leaders pause

All parties expected to be back on the campaign trail Sunday

Possible Canadian cases of vaping illnesses being investigated: health officer

‘I think that will be really important to address the overall trend of youth vaping’

Area 51 events mostly peaceful; thousands in Nevada desert

Three more people were arrested Friday on the remote once-secret military base

B.C. First Nation signs agreement to return its land on Vancouver Island

The land on the east coast of Vancouver Island will be returned to the We Wai Kai Nation

Former B.C. lifeguard gets house arrest for possession of child porn

Cees Vanderniet of Grand Forks will serve six months of house arrest, then two years’ probation

How to react to Trudeau’s racist photos? With humility, B.C. prof says

‘We are now treating racism as a crime that you cannot recover from’

Most Read