[miningmx.com] — EASTERN Platinum on Tuesday said it had finalised a $100m debt facility for the funding of its Mareesburg Project.
The company said it had signed a definitive agreement with UniCredit Bank, London Branch and Standard Finance.
Finalisation of the debt facility comes almost a year after the company first said it had the receipt of letters of commitment for a debt facility.
The term loan and revolving loan can be drawn down upon the satisfaction of agreed conditions precedent, which is expected to occur on or prior to the end of March 2012.
Eastplats president and CEO Ian Rozier said the debt facility ensured the company was well-capitalised for the next stage of its corporate growth.
“This financing, combined with our existing cash resources, provide us with substantial flexibility over the upcoming year as we complete the development of Mareesburg and the construction of the concentrator within the next twelve months,” said Rozier.
“We expect Mareesburg to be a low-cost operation that will deliver 100,000 PGM ounces per year at full production,” he added.
Mareesburg is seen as an important step in the company’s growth strategy. The company is targeting production of 225,000 PGM ounces by the end of 2013.