Elementos (ASX:ELT) is currently investigating appropriate funding sources to progress the Cleveland tailings project, which include equity, project level debt, offtake partners and possibly export development banks.
The company aims to advance the Cleveland tin-copper-tungsten project in Tasmania through a staged commercialisation strategy.
Cleveland is a large Renison style tin-copper deposit, with a separate world-class long life tungsten porphyry deposit accessible from the same in-place underground infrastructure.
The three stage development process would commence with: Stage One; tailings re-treatment, Stage Two; open pit mining and Stage Three; underground mining over a total mine life of 15 years.
A PFS estimated a bite-sized total pre-production CAPEX of $21 million for Stage One.
Cleveland has significant government and stakeholder support including approvals. A mining lease application has been submitted.
Funding update
Elementos recently received a proposal for a loan from the company’s non-executive chairman, Andy Greig.
The company’s directors (with Greig abstaining) determined that the loan is on arms length commercial terms and resolved to execute the loan agreement.
- Loan amount = $500,000.
- Loan term = 2 years.
- Interest rate = 6.0%.
- Unsecured.
- No conversion rights.
- No requirement to repay principal or pay interest during the loan term.
- Repayable by the company at any time (during the loan term).
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