NEW YORK Avanti Mining Inc. is arranging a $612-million secured debt financing facility to fund the construction of its Kitsault molybdenum mine in British Columbia.
The company has entered into a debt financing mandate letter with a syndicate of six lenders: Paris-based BNP Paribas SA; Nashville, Tenn.-based Caterpillar Financial Services Corp.; Ottawa, Ontario-based Export Development Canada; Seoul, South Korea-based Korea Development Bank; Mizuho Bank Ltd., Tokyo; and Munich-based UniCredit Bank AG.
The facility includes $500 million in senior debt for a 10.5-year term, $42 million in equipment finance for a five-year term and $70 million in standby cost overrun facilities for an eight-year term.
"The project finance facility is a major component of Avantis financing strategy. We can now focus on advancing equity funding options to complete our Canadian $818-million ($749.8-million) initial construction capital requirement for Kitsault," Avanti president and chief executive officer Gordon J. Bogden said in a statement.
The Toronto-based company began construction at Kitsault last month (amm.com, June 24) and subsequently received environmental approval from the Canadian government (amm.com, June 30).