Mandate for $640 Million Kitsault Financing Awarded

Avanti Mining Inc. (TSXV:AVT) entered into a mandate letter with five lenders for up to $640 million of project financing to develop the Kitsault molybdenum mine: UniCredit Bank AG, KfW IPEX-Bank GmbH, Export Development Canada, Korea Development Bank, and Caterpillar Financial.

As quoted in the press release:

The key terms of the mandate letter are $560 million senior debt for a term of 12 years plus $80 million in the form of a standby cost over-run facility (if needed) with a term of 8 years. The interest rate is LIBOR (London Interbank Offer Rate) based, loan repayments are semi-annual and there is a prepayment provision of a portion of excess free cash flow.

The funding under this facility will be subject to the customary conditions precedent for a financing of this type including the issuance of an environmental certificate under the Canadian Environmental Assessment Act and the BC Environmental Assessment Act, the necessary permits required for construction and equity investment by Avanti and its strategic partner. There is no certainty that the transaction contemplated in the mandate letter will be successfully completed.

Avanti Mining President & CEO, Craig Nelsen, said:

“I am delighted that Kitsault has entered into this mandate for project financing. This confirms our belief that Kitsault is a world class molybdenum deposit in a well known mining jurisdiction and can be developed in a manner that protects and supports the local communities,”

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