New Century Resources Limited (ASX:NCZ) is preparing to fast-track commissioning of the Century Plant and to commence mine development in Queensland after securing $58 million debt facility with global resources fund Sprott Resource Lending.
The company said the debt facility will allow commissioning and mine development to begin immediately on completion of Sprott financing process.
Evan Cranston, New Century Resources’ Executive Chairman, said the facility represents a major milestone for the company.
New Century is very pleased to have 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, Mr Cranston said.
“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.”
Sprott Resource Lending’s Managing Partner Narinder Nagra said the company was excited to partner with New Century Resources for the near-term development the Century Zinc Mine.
“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.”
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Completion of the debt facility remains conditional on, amongst other conditions, completion of legal and technical due diligence and formal documentation. Subject to the satisfaction of these conditions, New Century expects final agreements to be concluded in late November 2017.
Mr Cranston said New Century’s Restart Feasibility Study also remains on track and is targeted for completion and delivery 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.