BRITISH COLUMBIA – Avanti Mining of Vancouver has signed a mandate letter with five lenders for up to $640 million to be used to develop the Kitsault molybdenum mine 140 km northeast of Prince Rupert. The key terms are $560 million senior debt for a term of 12 years plus $80 million for contingency (if needed) with a term of eight years.
The mandate letter represents preliminary approval, but each of the lenders will still practice due diligence, final credit approval and negotiation and execution of a loan agreement under Ontario law.
AMEC Americas completed the feasibility study on the potential of a reopened Kitsault mine for Avanti in December 2010. Proven and probable reserves were pegged at 232.5 million tonnes averaging 0.081% Mo. A conventional open pit to be mined in six phases and a 40,000 t/d concentrator were proposed.
Additional information is available in the technical reports posted at AvantiMining.com.