Cobar secures A$22m for silver project

(miningweekly.com) – Silver developer Cobar Consolidated Resources (CCR) has secured a A$22-million project finance facility with the Commonwealth Bank of Australia to complete the construction of its Wonawinta project, in New South Wales.

The project financing facility includes an A$11-million three-year term loan facility, a A$2.5-million working capital facility, a A$2.5-million cost over run facility and a A$6-million security bond facility.

Draw-down of the term loan was subject to satisfaction of conditions precedent, the most significant of which were the grant of the mining lease and the transfer of the water licence, said CCR on Monday.

MD Ian Lawrence said in a statement that the project finance facility would require the company to hedge 30% of its estimated silver production over the first three years of the project life.

CCR has further agreed to issue 500 000 options to the Commonwealth Bank of Australia under the terms of the facility.

CCR’s Wonawinta silver project has a 51-million ounce indicated and inferred resources and a 14-million ounce probable reserve. The project would likely produce some 12.8-million ounces of silver a year, over a five-year project life, with first production forecast to start before the end of the year.

Tags: Cobar Consolidated Resources, Silver, silver mining, silver mining companies, silver mining industry

Posted by Silver Guru on Oct 31 2011. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry