Atlas Salt (TSX-V:SALT) is undertaking financing activities for the Great Atlantic Salt Project in Newfoundland, Canada, with indications of interest from prospective lenders and strategic partners.
Multiple interested parties are currently working within Atlas Salt’s established due diligence process. Concurrent workstreams include ongoing engagement with export credit agencies.
All discussions remain non-binding. Atlas Salt will provide further updates as material developments occur.
Supported by financing advisor Endeavour Financial, Atlas Salt is pursuing C$350-400 million of senior secured debt, with the potential for additional subordinate debt, anchored by an updated Feasibility Study. The study delivered a post-tax net present value of C$920 million ($933 million) and an internal rate of return of 21.3%, with a 4.2-year payback period.
Great Atlantic has a projected production rate of 4 million tonnes per year, with a post-tax free cashflow of C$188 million over a 25-year mine life.
Construction and permitting
Atlas Salt also notes that construction and permitting activities are advancing, with On Grade Construction and other contractors mobilised to site with early works underway.
A town development permit from the Town of St. George confirms that full early works scope authorisation under a single permit, streamlining the process now and in the future.
Subject to weather and site conditions, in the coming months the company expects the early works program to advance from initial clearing and bulk earthworks into the balance of the authorised site-development scope.
Atlas Salt plans to construct the primary and secondary access roads and onsite road network, as well as establish construction laydown areas and temporary facilities. The company will also progress earthworks to shape site terraces, the life-of-mine stockpile foundations, and the catchment and diversion ditches, together with the peripheral berms and fencing that define the developed footprint.
Environmental and sediment-and-erosion controls will continue to be installed and maintained ahead of and throughout these works.
CEO Nolan Peterson says Great Atlantic is moving decisively from planning into execution.
“The discipline our team is demonstrating in the field, measured progress, strong safety performance, and active environmental oversight, is the same discipline we will carry into capital works construction, and it underpins the strong early interest we are seeing from the financing community,” Peterson says.
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
