Atlas Salt (TSX-V:SALT) has secured more than C$300 million ($302.1 million) in financing letters of interest for the development of the Great Atlantic Salt Project in Newfoundland and Labrador, Canada.
This follows the company’s progress on its previously announced memorandum of understanding (MoU) with Sandvik (STO:SAND), as well as a separate non-binding letter of interest from an export credit agency.
The MoU with Sandvik has advanced into a non-binding letter of interest for equipment financing of up to C$79 million.
Together with Atlas Salt’s previously reported letter of interest from Export Development Canada (EDC) for up to C$150 million, aggregate financing letters of interest for the project now exceed C$300 million.
CEO Nolan Peterson says these are the pillars on which the company is building a broader financing package, including a commercial bank syndicate, as it works towards a complete financing package.
“Vendor and export credit support of this scale reflects the strength and strategic significance of our long-life, industrial-salt asset, and the international export interest it supports,” Peterson says.
“This is one part of a structured process that is progressing across multiple counterparties and jurisdictions, and we look forward to advancing it in a disciplined manner alongside our advisor, Endeavour Financial.”
Building a financing package
Under the letter of interest, C$45 million is attributable to capital equipment forming part of Great Atlantic’s underground mobile mining fleet, with the balance available to support equipment leasing arrangements during the initial years of operations.
Any participation by Sandvik remains subject to due diligence, credit approvals, and negotiating definitive agreements.
The separate non-binding letter of interest with an export credit agency wholly owned by the Canadian Government reflects a qualifying export interest arising from the anticipated supply of Sandvik mining equipment to the project.
Any participation by the export credit agency is subject to completing due diligence, securing all necessary internal and credit approvals, as well as negotiating definitive documentation.
The company will continue to engage with prospective lenders, vendor financing counterparties, export credit agencies, and strategic financing partners across multiple jurisdictions.
This news comes after Atlas Salt partnered with Canada’s largest railway operator, CN, to explore distribution solutions for de-icing salt from its Great Atlantic Salt Project.
Both companies will explore multimodal rail solutions for Great Atlantic. This includes the potential for integrated rail logistics to reduce transportation costs, expand the project’s addressable market, and improve its economics.
Great Atlantic is described by Atlas as the only feasibility-stage salt project in North America. The proposed underground mine is expected to produce 4 million tonnes per annum over a 24-year mine life.
Atlas Salt is developing North America’s next salt mine and is committed to responsible and sustainable mining practices.
Write to Aaliyah Rogan at Mining.com.au
Images: Atlas Salt
