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Avanti arranging $612M in financing for Kitsault Mine

Keywords: Tags  Avanti, Kitsault, financing, funding, debt financing facility, molybdenum, Gordon Bogden, Daniel Fitzgerald

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 Avanti’s 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 (, June 24) and subsequently received environmental approval from the Canadian government (, June 30).

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