Bushveld Minerals PLC (LON:BMN) subsidiary, Lemur Holdings, has arranged a US$1mln loan facility with the Development Bank of Southern Africa for finalising details at its Imaloto thermal power station project in Madagascar.
Negotiations with potential lenders are progressing, said Lemur while DBSA’s loan will tide it over until financial close - the point when it has arranged funding to take the project through to commissioning.
Lemur has already completed a bankable feasibility study for the power side of the project and is working on optimising the underground mining plan.
Talks are ongoing over the engineering, procurement and construction (EPC) contract for the power station while fieldwork for the social and environmental study is scheduled to complete this quarter.
DBSA participation in the development of the Imaloto Project highlights the economic potential of our project as well as the developmental benefits it offers to southwestern Madagascar, said Prince Nyati, Lemur’s chief executive.