Pilbara Minerals (ASX:PLS) has successfully completed a senior secured bond issue, with the offering closing fully subscribed and raising a total of US$100 million.
The new funds will underpin the project financing package required to develop the company’s Pilgangoora Lithium-Tantalum Project, which is now poised to move into full-scale development.
Pilbara Minerals’ fully owned Pilgangoora project is located in Western Australia’s Pilbara region.
The project has a resource of 156.3 million tonnes grading 1.25% lithium oxide, containing 4.83 million tonnes of lithium carbonate equivalent.
Pilbara Minerals’ bond issue was supported by a combination of large Australian and international funds, including those focussed on natural resources and the renewable energy sectors.
The net proceeds from the bond issue will be applied towards capital and development costs for the project.
Pilgangoora project is viewed as one of the world’s leading lithium development projects, given the project’s scale, high-quality product and expected low cost of supply.
Last month, the company received environmental approval for the project, marking the last of the major approval milestones and clearing the way for construction to proceed.
Pilbara Minerals has also signed an off-take agreement for the sale of spodumene concentrate (a source of lithium) from the Pilgangoora project.
The binding off-take agreement comprises 160,000 tonnes per annum of spodumene concentrate over an initial 10-year term to integrated Chinese lithium producer, Jiangxi Ganfeng Lithium Co.