New Century Resources Ltd has announced a deal to fund the restart of Century Zinc Mine next year.
The company has signed a legally binding, conditional term sheet, for a $58m debt facility with global resources fund Sprott Resource Lending (Sprott) which it says marks a major milestone to fund the restart of the mine.
Commenting on the debt facility, New Century Resources Executive Chairman Evan Cranston said they had secured this significant debt financing facility on attractive terms through Sprott, who are widely recognised as one of the world’s leading providers of finance to the natural resource sector.
“This facility will allow the team to expedite its activities for the targeted restart of the Century Zinc Mine, with the funding used for the commissioning process and achievement of first production in 2018,” Mr Cranston said.
Sprott Resource Lending’s Managing Partner Narinder Nagra said they were one of the leading investors dedicated to the natural resource sector.
“Sprott is excited to partner with New Century Resources for the near term development the Century Zinc Mine,” Mr Nagra said.
“We look forward to working with the management team on the restarting of operations at the Mine, to once again establish Century as a globally significant zinc operation.”
The debt facility is conditional on legal and technical due diligence and formal documentation.
New Century expects final agreements to be concluded in late November 2017 when full details will be announced.
New Century’s Restart Feasibility Study is targeted for completion by Sedgman in November 2017.
New Century’s advisors for the proposed debt facility are Tamesis Partners LLP, a specialist ECM and advisory house with a focus on the mining sector.
Former owners MMG closed the mine in 2015.