viewAltura Mining Ltd

Altura Mining secures US$110M loan for its Pilgangoora Lithium Project

The funds raised will be directed towards completion of construction.

The company has entered into five-year binding offtake agreements

Altura Mining (ASX:AJM) has entered into a loan agreement to raise US$110 million to allow completion of construction and commissioning of its Pilgangoora Lithium Project in Western Australia.

The loan agreement is with leading U.S. and Swiss based investment management groups, Magy LLC, Pala Investments Limited and CarVal Investors LLC.

The Pilgangoora Project is well advanced, having commenced earthworks and construction in March 2017.

The funds raised will be directed towards completion of construction, commissioning and then commencement of production and sales.

Significantly, the company has entered into five-year binding offtake agreements for a minimum of 200,000 tonnes per annum of spodumene to be produced from the mine.

This provides certainty for both investors and the financiers in the ability of the project to generate substantial near term cashflows.

The project has an extensive mine life and forecasts significant returns delivered via substantial offtake partnerships, low cost operations and product pricing.

A definite feasibility study for the Pilgangoora Lithium Project in September 2016 had projected a pre-tax net present value of $411 million 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 million tonnes at 1.06% lithium.

Quick facts: Altura Mining Ltd

Price: 0.063 AUD

Market: ASX
Market Cap: $146.5 m

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