True North locks in US$28 million funding package

True North Copper (ASX:TNC) has executed binding agreements and obtained Nebari Investment Committee clearance for a 4-year US$28 million ($42 million) senior secured loan facility with Nebari Natural Resources Credit Fund II LP. 

True North Copper, which has a $52.21 million market capitalisation, says the funds will be issued in two tranche payments of US$18 and US$10 million, respectively. 

Tranche one will be drawn at closing, while tranche two will be available to be drawn subject to certain conditions precedent including commencement of commercial production of sulphide ore at True North’s Cloncurry Copper Project (CCP) in Queensland

Funds will be used to repay in full a short-term working capital loan advanced to True North by Dyda Property Management pursuant to a loan agreement in September 2023 and refinancing of the rehabilitation bond for CCP, being just shy of $13.5 million. 

Key terms of the loan facility include Nebari completing its due diligence and notifying True North that the transaction has been approved by its investment committee and True North issuing under 46.4 million warrants exercisable at $0.1177 to Nebari on closing.

The warrants will have a 48-month exercise period and, on exercise, will convert into True North Copper shares on a one for one basis. 

True North Copper Managing Director Marty Costello says funding from a ‘highly respected’ and ‘experienced’ financier is a ‘significant’ milestone for the company. 

“We are very pleased to have secured the support of Nebari Natural Resources Fund following a rigorous due diligence and funding process. 

These funds will be used to refinance the environmental bond, as the key next step in our mining restart at the Cloncurry Copper Project, as well as provide working and restart capital. 

TNC will soon announce the approved Cloncurry Copper Project mine plan. We’re incredibly excited about restarting mining and bringing the Cloncurry Copper Project into production, at a time where the world’s copper supply is really tightening up and the metal price is rising.”   

True North aims to start copper metal production at the CCP with mine plans combining the Great Australia Mine Reserve and the Wallace North Resource into a single mining operation.

Final CCP mine plans are poised to be announced in early 2024, reflecting updated reserve data. CCP reserve, including updated GAM reserve and maiden Wallace North reserve, and reporting by MEC Mining Consultants are also expected in early 2024.

Nebari Managing Director Juan Alvarez says the fund is excited to partner with True North Copper as it develops its Cloncurry Copper and Mt Oxide projects.  

“And we look forward to being a long term partner and supporting True North Copper in their future growth strategy.”

Nebari Partners is a US-based investment manager specialised in privately offered pooled investment vehicles, including Nebari Natural Resources Credit Fund. 

True North Copper is a Queensland copper and critical minerals miner whose assets include the wholly owned and ‘high-grade’ CCP and Mt Oxide Project. 

Write to Adam Drought at Mining.com.au

Images: True North Copper
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.