Trafigura to provide A$100m for Australia copper/zinc mine
Australia’s Develop Global has agreed a A$100-million prepayment/loan facility and offtake agreement with global commodities trader Trafigura for the Woodlawn copper and zinc mine in New South Wales.
The agreement paves the way for a final investment decision and puts the Woodlawn mine on track for production and cashflow by the middle of next year.
“The competitive prepayment/loan facility and offtake agreements are a game-changer for Develop,” says MD Bill Beament.
“The terms of the prepayment/loan facility are extremely competitive, with a low interest rate and significantly flexibility. This represents a strong vote of confidence in the quality of the mine, its management and the A$400-million of equity capital that has been invested in the mine by Develop and the prior owner,” said Beament.
The offtake agreement underpins Woodlawn’s future, with improved terms relative to those assumed in the restart study released in early April.
Beament noted that the benefits of the prepayment/loan facility and offtake arrangement for Develop could be seen in the increase in the project’s net present value from A$658-million to A$728-million.
In terms of the agreement, Trafigura would provide $65-million, or the equivalent in Australian dollars, in a prepayment/loan facility. Combined with Develop’s existing cash reserves of A$41-million and a profitable mining services division, Woodlawn is now “comfortably and fully funded through to production”.
The mine plan estimates that Woodlawn will produce an average 12 000 t/y of copper and 36 000 t/y of zinc metal in payable streams over an estimated ten-year mine life, with life-of-mine payable metal of 80 000 t copper and 218 000 t zinc.
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