Atlas Salt (TSX-V:SALT) has received a letter of interest from Export Development Canada (EDC) stating its interest to provide long-term debt financing of up to C$150 million ($152.31 million) for the Great Atlantic Salt Project in Canada.
CEO Nolan Peterson says EDC’s letter of interest is an “important endorsement” of the Great Atlantic Salt Project and the fundamentals of the updated Feasibility Study.
“Export credit agencies apply rigorous, disciplined diligence, and their engagement at this stage reflects the strength and strategic significance of a long-life, Canadian industrial salt asset,” Peterson says.
“This key derisking event is one part of a broader financing process that is progressing across multiple counterparties and jurisdictions, and we look forward to advancing that process in a diligent manner alongside our advisor Endeavour Financial.”
The letter of interest supports EDC’s advancement of due diligence on Great Atlantic as a prospective participant in the project’s senior debt financing process, led by Endeavour Financial.
More money and more developments
Atlas Salt is continuing to advance project financing for the Great Atlantic Project with the support of Endeavour. The company is currently pursuing a C$350-400 million of senior secured debt.
The company has received indications of interest from prospective lenders, vendor-financing counterparties, and strategic financing partners across multiple jurisdictions, and continues to engage with export credit agencies as part of a structured, competitive financing process.
Interested parties are working within the company’s established due diligence process. All discussions remain non-binding, and there can be no assurance that any financing will be completed.
Great Atlantic’s updated Feasibility Study delivered a post-tax net present value of C$920 million, with an internal rate of return of 21.3%. The study also delivered a 4.2-year payback at a steady state production rate of 4 million tonnes per year, with a C$188 million post-tax free cashflow over a 25-year mine life.
Atlas Salt is focused on 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
