NEW YORK Avanti Mining Inc. is reviewing "strategic financing alternatives" for its Kitsault molybdenum mine in British Columbia, which is still awaiting approval from the Canadian Minister of Environment.
The Vancouver, British Columbia-based company has hired BMO Capital Markets Corp. to assist with its review of financing options, such as a minority investment by a strategic party, offtake agreements with third parties or a joint venture of the Kitsault project.
"In conjunction with this process, Avanti will renew discussions with five interested lenders regarding the provision of approximately 60 percent of the funding needed in the form of project debt," it said.
Avanti added that there is no guarantee that the review process will result in any transaction, and that it isnt planning to provide any update on the review process unless the board of directors approves such a transaction.
Avanti said in November that it expected to have federal approval for Kitsault by the end of 2013 (amm.com, Nov. 15), but revised this Jan. 8 to say that federal approval was expected "shortly." Provincial government approval was received in March 2013 (amm.com, March 20).
A representative for the Canadian Minister of the Environment couldnt be reached for comment.
Avanti signed an offtake deal with ThyssenKrupp Metallurgical Products GmbH in June for 50 percent of Kitsaults total molybdenum production (amm.com, June 21).
The mine is expected to produce 367 million pounds over its 14-year life.