Arafura in 'major debt funding milestone' for Nolans Project
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The news: Rare earths miner Arafura has announced a "major debt funding milestone", moving the Gina Rinehart-backed company towards a final investment decision on its Nolans project in the Northern Territory.
The numbers: Arafura said it has received conditional approvals from export credit agencies and commercial lenders for a targeted USD775 million ($1.167 billion) in senior debt funding.
The debt package totals more than USD1 billion including project completion support provided by an USD80 million cost overrun facility and a subordinated standby liquidity facility of USD200 million.
Arafura said the project's total funding requirements include USD1.3 billion in pre-production capital costs, USD66 million in working capital over the construction period and initial stage of the operation ramp up, and USD168 million in financing costs for the same period.
Shares in the Perth-based miner lifted 2.6% to $0.2 by 11:55am AEST.
The context: Nolans is on track to be one of Australia's first ore-to-oxide rare earths processing facilities that will deliver responsibly mined and processed products to global customers.
Arafura has received funding support from a commercial lender group comprising KfW IPEX-Bank, KEXIM Global, Commonwealth Bank of Australia, ING and the government agency Export Finance Australia.
Nolans also has support from the Northern Australia Infrastructure Facility and untied loan guarantee commitments from Canadian, Korean and German export credit agencies.
The sources: ASX announcement, ASX announcement
