Hillgrove Resources (ASX:HGO) has executed a $10 million standby debt facility agreement with Freepoint Metals and Concentrates to scale up operations at the Kanmantoo Copper Mine in South Australia.
The facility will be provided in two $5 million tranches and is to be repaid in six instalments starting seven months after first drawdown, with the final instalment due 12 months after first drawdown.
The $142.49 million market capitalisation company says the facility provides financial flexibility, although it does not currently anticipate drawing down on the funds.
CEO Bob Fulker says Hillgrove has an opportunity to significantly grow ore reserves and extend the mine life at Kanmantoo.
“This improved balance sheet flexibility will enable us to pursue this opportunity while we continue to focus on safe and reliable copper production,” Fulker says.
“Hillgrove is well-positioned to finish the year strongly and the production ramp up at the Kanmantoo Copper Mine remains on track.”
The Kanmantoo Mine produced 2,923 tonnes of copper during the September quarter.
Kanmantoo, which lies just outside of Adelaide, operated as a series of open pits between 2010 and 2020. The project produced around 137,000 tonnes of copper and over 55,000 ounces of gold.
Hillgrove Resources is a copper-focused mining company that has been operating in South Australia since 2005.
Write to Aaliyah Rogan at Mining.com.au
Images: Hillgrove Resources
