Galena Mining Ltd's (ASX:G1A) joint venture company for the in-development Abra Base Metals Project in WA, Abra Mining Pty, has received US$35 million after it completed the second drawdown of the Taurus Debt Facilities.
Galena owns 60% of the Abra asset, which sits between the mining towns of Newman and Meekatharra and just 110 kilometres from Sandfire Resources Ltd’s DeGrussa Project.
It is a globally significant lead-silver project in the Gascoyne region of Western Australia and Galena has completed a postive definitive/bankable feasibility study for development of an underground mine and processing facility to produce a high-value, high-grade lead-silver concentrate.
A ‘final investment decision’ to complete the project was made in June 2021 and construction is ongoing to reach first commercial production in the first quarter of 2023.
Another milestone achieved
“The receipt of the US$35 million (A$49.5 million) second drawdown from Taurus is another milestone on our pathway to first commercial production of high-value, high-grade lead-silver concentrate from Abra in the first quarter of 2023,” Galena’s managing director Tony James said.
“We appreciate Taurus’ continued support for us as our debt funding partner.”
A total of US$65 million has been drawn under the Taurus Debt Facilities, with US$45 million of funding still undrawn (equivalent to A$62 million at current exchange rates).
The facility is made up of:
- US$35 million Project Finance Facility
- US$10 million Cost Overrun Facility.
The Taurus Debt Facilities are secured against Abra Project assets and over the shares that each of Galena and Toho own in AMPL, and additional drawdowns remain subject to satisfaction of customary conditions precedent.
This drawdown comes just a week after the company announced it had achieved two further milestones in the construction of the Abra Base Metals Mine including completing the mine’s new airstrip and installing the primary jaw crusher.