Galena Mining Ltd (ASX:G1A) has completed the final draw down of US$25 million under an existing debt facility from Taurus Funds Management Ltd for the Abra Base Metals Mine in the Gascoyne region of Western Australia.
The loan, part of a US$100-million debt facility, was made following 83% completion of the project.
“The receipt of the US$25 million final drawdown from Taurus puts the Abra mine construction in the home straight. Again, we greatly appreciate Taurus’s ongoing support and working relationship,” Galena managing director Tony James said.
installation of the flotation cells in the Abra processing plant
These funds, together with the A$30 million temporary unsecured reserve facility, provide Abra with adequate funding buffer to complete the construction of the project as well as the commissioning and ramp-up phase of the mine.
The Taurus debt facilities are secured against Abra project assets and over the shares that each of Galena and Toho own in Abra Mining Pty Ltd, the joint venture vehicle in the project.
The 1.2-million-tonne-a-year Abra project is expected to produce about 95 000 tonnes per year of lead and 805 000 ounces of silver over its 16-year mine life.