Altura Mining Ltd (ASX:AJM) has received US$33mln as the first tranche of a US$110mln debt facility to allow completion of construction of its Pilgangoora Lithium Project in Western Australia.
The receipt of the funding package has enabled Altura to continue its rapid construction at the Pilgangoora mine site.
Altura is also making significant progress towards completion of the conditions precedent required for the drawdown of the proceeds from tranche 2 of the debt facility by 27 September 2017.
READ: Altura Mining secures US$110M loan for its Pilgangoora Lithium Project
The Pilgangoora project is well advanced, having commenced earthworks and construction in March 2017.
A definite feasibility study for the project in September 2016 had projected a pre-tax net present value of $411mln on and a payback period of just 1.8 years.
The project has an initial 13-year mine life based on the ore reserve estimate of 20.33 mln tonnes at 1.06% lithium.
The concrete pour on site continues, and is now 40% complete, which equates to circa 2,000 cubic metres of concrete.
Meanwhile, the manufacture of the crushing and screening plant is complete with the final shipment to leave China in mid-August.
The cone crusher, pan feeder, magnet and rock breaker have already been received and are presently in storage at Welshpool, Western Australia.
The detailed design of the process plant has also recently been completed by Altura’s in-house team and the contracted design engineers.
The number of persons at the accommodation camp exceeded 200 for most of July, and are projected to be over 250 by the end of August.
The Pilgangoora lithium project is forecast to deliver significant returns via substantial offtake partnerships, low cost operations and an attractive product pricing.