NEW YORK Avanti Mining Inc. has obtained $10 million in additional funding for the development of its Kitsault molybdenum mine in northern British Columbia.
The Vancouver, British Columbia-based company has entered into a binding and committed term sheet with CEF Holdings Ltd. and Resource Capital Fund IV LP (RCF) that extends and restructures its existing $20-million bridge loan.
"The new financing provides Avanti with funding for the planned activities for the balance of this year, during which we will be working to arrange the total debt and equity financing needed to build the Kitsault project," Avanti chief financial officer A.J. Ali said in a statement.
RCF is managed by Denver-based RCF Management LLC, which has provided financing for Avanti to acquire and develop the Kitsault deposit since 2008 and owns about 37 percent of the junior miner.
Avanti also has signed a letter of understanding with the Gitanyow Hereditary Chiefs that commits both parties to negotiate a cooperation agreement to address issues such as employment opportunities and environmental protection.
Avanti recently signed an offtake agreement with ThyssenKrupp Metallurgical Products GmbH (TK MetPro) for 50 percent of the total molybdenum production from Kitsault (amm.com, June 21).