HomeBase MetalsAlphamin Resources executes term sheets for US$80 million project debt

Alphamin Resources executes term sheets for US$80 million project debt

The term sheets are indicative, subject to conditions precedent customary for facilities of this nature, including required regulatory approvals, and do not constitute binding commitments on either the company or the potential lenders.

Alphamin Resources is working diligently towards securing unconditional commitments from the potential lenders, and will update the market as soon as more information is available.

There can be no assurance that the company will be successful in obtaining binding commitments or in completing the required debt financing for the project.

“I am delighted with the latest developments on the debt portion of the overall funding package. I am confident that the potential lenders’ due diligence processes will be completed to their satisfaction, and look forward to working together with the parties in order to timeously secure unconditional commitments for these facilities,” comments Alphamin Resources CEO, Boris Kamstra.

The recent completion of the front-end engineering design (FEED) programme and associated control budget estimate (CBE) by DRA Projects, the engineering, procurement and construction contractor for the project, confirmed the robust economic metrics and potential of the project.

The mine, when developed, will be North Kivu’s first commercial mine and a new premier global tin producing mine.

A comprehensive process for estimating capital costs was followed and the CBE results illustrate that the project has the potential to remain strongly profitable at lower tin prices, as well as at increased prices for key consumables.

The completed FEED and CBE increase proven and probable reserves to 4.67 Mt at 3.58% tin containing 167 300 t of tin, while also increasing the life of mine (LoM) to 150 months or 12.5 years.

Feature image credit: Alphamin Resources