BCI Minerals (ASX:BCI) has received approvals for $150 million of project finance debt for the Mardie Salt Project in Western Australia from 2 commercial bank debt providers.
The $351.92 million market capitalisation company notes the project finance debt includes all components of the Mardie Project other than the sulphate of potash (SOP) plant.
These credit approvals are in addition to the recently announced debt funding approvals from federal government bodies Northern Australia Infrastructure Fund (NAIF) and Export Finance Australia (EFA).
BCI says a total of $650 million of Australian federal government funding has been approved via a $490 million, 15-year facility from NAIF and a $160 million, 11-year facility from EFA for the Mardie Project.
The commercial bank funding is proposed to include a $180 million, 7-year construction facility, an $81 million cost overrun facility, and a $70 million bank guarantee facility for bonds required under construction or operating contracts.
BCI says the lending approvals from the 2 leading commercial banks, for a minimum of $150 million, will provide part of these requirements.
Commenting on the debt funding, BCI Minerals Managing Director David Boshoff says: “Project finance is gaining momentum, with ongoing support from key lenders indicating strong confidence in BCI’s Mardie Project.
The participation of 2 leading commercial banks, alongside NAIF and EFA, brings us closer to completing the project finance debt package and acquiring the funding needed to complete the project.”
All facilities remain conditional on formal documentation, securing required tenure and approvals for the optimised feasibility study area, equity funding, offtake arrangements, and satisfying other customary conditions associated with the loans.
“The participation of 2 leading commercial banks, alongside NAIF and EFA, brings us closer to completing the project finance debt package and acquiring the funding needed to complete the project“
The company is targeting completion of formal debt documentation in the first half of 2024 and the first drawdown of debt in the second half of 2024, subject to satisfying all relevant conditions precedent.
BCI Minerals is an Australian-based mineral resources company that is developing an industrial minerals business, with salt and potash as its initial focus. The company is currently developing the Mardie Salt and Potash Project in the Pilbara coast in the centre of Western Australia’s key salt production region.
As of 30 June 2023, the company had $109.5 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: BCI Minerals
