Coolabah Metals (ASX:BHM), which will be renamed Broken Hill Mines, has entered a binding conditional term sheet with Hartree Metals for a financing facility and 200,000 tonnes of lead concentrate offtake.
The secured offtake financing facility includes a four-year, US$25 million financing package at an interest rate of secured overnight financing rate (SOFR) +3.5% to fund growth activities at the Rasp and Pinnacles mines.
A grace period of 12 months applies to principal repayments prior to straight line quarterly repayments until the end of the term. The offtake financing facility is to be senior secured by Broken Hill Mines and Coolabah.
Hartree will purchase 200,000 tonnes of lead concentrates from the Rasp and Pinnacles operations on competitive market terms and industry standard payability for lead and byproduct metals, including silver.
Hartree has also executed a spot lead concentrate offtake agreement for lead production from Rasp operations up to 30 June 2025.
The Hartree offtake financing facility replaces the previously announced proposed transaction with Trafigura Group for US$10 million of financing and the purchase of 200,000 tonnes of lead concentrate from Rasp and Pinnacles.
Hartree Metals operates in the wholesale energy and metals markets. The company has expertise across various physical and financial commodities, leveraged from decades of experience since its inception in 1997 as Hetco.
Write to Adam Orlando at Mining.com.au
Images: Coolabah
