MICHIGAN – Lundin Mining Corp. of Toronto has secured commitments from a syndicate of lenders for a $250 million loan with which to advance the Eagle nickel-copper project in the Upper Peninsula, near Marquette. The new credit agreement also extends the maturity of the existing $350 million revolving credit facility to four years from the date of closing.
Surface construction at the Eagle property began in 2010 and underground development in 2011. Lundin bought the property from a subsidiary of Rio Tinto earlier this year for $315 million. Lundin has targeted the end of 2014 for start up.
Eagle is an ultramafic-intrusive hosted nickel copper deposit. The proven and probable reserves are 5.33 million tonnes grading 3.1% Ni, 2.5% Cu, 0.25 g/t Au, 0.64 g/t Pt, 0.43% g/t Pd, and 0.08% Co. Ore will be treated in a 2,000-t/d conventional crushing, grinding, flotation mill. Lundin says annual production in the first three years of operation will be 23,000 tonnes of nickel and 20,000 tonnes of copper at cash costs of US$2.00 per lb of nickel.
Additional information is available at LundinMining.com.