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Alloycorp Mining Inc. (TSXV:AVT) released an update on its Avanti Kitsault project, noting that there have been developments since the general corporate update it released in November 2014.

Alloycorp Mining Inc. (TSXV:AVT) released an update on its Avanti Kitsault project, noting that there have been developments since the general corporate update it released in November 2014.

As quoted in the press release:

The Company continues to pursue credit commitments from a syndicate of lenders (collectively, the ‘Lenders’) mandated on July 29, 2014, to provide secured financing facilities for US$612 million for the development of Avanti Kitsault. As at March 26, 2015, credit approvals for US$225 million have been provided by two lenders, while one lender has declined participation in the facility. The remaining three lenders continue to work towards final credit approval, while other new lenders are reviewing their participation in the syndicate.

In addition to the debt financing, Alloycorp continues to pursue a range of equity financing alternatives to complete construction capital requirements. To date, the Company has received a conditional equity investment commitment (the ‘RCF Commitment’) of US$140 million from Resource Capital Fund VI L.P. (‘RCF’), of which US$50 million will be used to repay the outstanding secured bridge loan facility with RCF. In addition to the RCF Commitment, the Company has also received a conditional equity investment commitment of approximately US$70 million from several limited partners of RCF. The completion of the secured financing facilities and the equity investments are subject to conditions including ongoing due diligence, negotiation and execution of definitive documentation, negotiation of terms, regulatory approvals and other customary conditions.

In terms of what’s going on at the project, the company said highlights include:

  • Overall engineering and procurement was approximately 55% complete at the end of February 2015;
  • Camp expansion is now complete, supporting a 150 bed camp;
  • Construction of the Nass River Bridge is complete, providing primary road access to Avanti Kitsault;
  • On October 23, 2014, Alloycorp received its water discharge permit from the British Columbia Ministry of Environment, the final permit required to complete construction; and
  • On October 1, 2014, construction of the access road to the Avanti Kitsault plant site was also completed.

Gordon Bogden, president and CEO of Alloycorp, commented:

We are pleased with the progress we have made with our Lenders to-date. Despite a volatile price environment for molybdenum and resource commodities in general, observed over the past few months, their continued support is a testament to the quality of the Avanti Kitsault asset and its management team.

Click here to read the full Alloycorp Mining Inc. (TSXV:AVT) press release.

Alloycorp is a TSX-Venture listed company headquartered in Toronto with an operations office in Vancouver. Alloycorp’s strategy is to become the unique supplier of steel alloy metals. Cornerstone to this strategy is the development of Avanti Kitsault. Parallel to this, Alloycorp is seeking to grow through the acquisition of other assets with commodities that supply to the steel alloys industry.

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