BRITISH COLUMBIA – Vancouver-based Avanti Mining has arranged a pre-construction loan worth US$40 million with Resource Capital Fund VI. The purpose of the loan is to provide the company with working capital for the Kitsault molybdenum project 140 km northeast of Prince Rupert. The funds will be drawn down in several tranches.
The money is earmarked for several pre-construction activities. It will be used to reduce capital cost risk, order long lead time equipment, and prepare tender documents for contract awards. Communication infrastructure must be built at the mine site. BC Hydro requires a letter of credit before it re-energizes the existing power line to the mine site. The camp at the site will be expanded. New hiring for the management team is anticipated, and deposits must be made on an asphalt paving machine for the tailings dam construction. Project debt financing fees and expenses payable to mandated banks must also be paid.
The province issued the Kitsault environmental certificate in March 2013, and Avanti applied for a construction permit the following month. The final permits are expected by the end of the year.
Technical reports for the Kitsault mine are available at AvantiMining.com.