Mincor Resources, the Australia-based nickel miner, has agreed a A $55m deal with a primary banking syndicate to support nickel operations in Kambalda, Western Australia.
The agreement is subject to compliance with regulations and the company expects the first drawdown to take place by the end of the third quarter of this year.
At the same time, equity funds in the raised funds account will continue to be used to cover current expenses.
The company said on Friday that the start-up capital for the Kambalda nickel mine has been fully funded, with A $60 million of the reserve being placed in an account to fund ongoing mine development and construction activities. The remaining A $35 million is used for exploration and resource expansion, as well as normal operations.
David Southam, managing director of the company, said: "Cassini and Northern Operations have made great progress, with the team placing a high priority on safe and effective underground developments, such as the mine development being carried out 800 metres from Cassini."
In September last year, the board of Minco Resources approved the A $68m development of the Kambalda project, which is expected to produce 71,000 tonnes of nickel and 5,000 tonnes of copper over the mine's five-year life.
The company, which has agreed terms with BHP Billiton's Nickel West on grid power for the Cassini plant, told shareholders that the switch to grid power was a change to the final feasibility study, which assumes the feasibility of diesel power generation.
The move could save A $7 million to A $10 million over five years.
