Northern Graphite Corporation (TSXV:NGC) announced that it has already signed the term sheets with Caterpillar Financial Services Corp. in order to fund the purchase of Cat mining and Cat power equipment in the amount of US $17.5 million. The equipment will be used for the company’s graphite project in Bissett Creek.
As quoted in the press release:
The equipment financing facility will cover the cost of the mobile mining fleet and the purchase and installation of natural gas powered generators including the engineering, procurement and construction management related thereto. The Company’s recently completed feasibility study contemplated mining being carried out by an independent contractor. By buying and operating its own mining fleet, the Company anticipates that it will reduce operating costs by in excess of US$50/t per tonne of concentrate produced. Closing of the financing facilities is subject to customary conditions including due diligence, satisfaction of conditions precedent, internal Cat Financial credit approval and negotiation and execution of definitive legal documentation.