Welcome to a roundup of some of our financing, exploration, and development stories on Theassay.com over the last week. To keep up to date with all the latest headlines, subscribe to our weekly newsletter.
Financing and M&A
This week, Andromeda Metals Limited (ASX: ADN) has announced that it has entered into a binding offtake agreement with Traxys Europe S.A. for the sale and purchase of Andromeda’s kaolin products for the first five years of production.
Bob Katsiouleris, CEO, and managing director, said, “We are excited to seal our comprehensive strategic partnership with Traxys. Traxys is an ideal strategic partner for Andromeda, one in whom we can trust, and one that shares our commitment to meeting the increasing global need for superior industrial minerals.
“Traxys’ binding commitment for significant volumes during the initial stages of production, and its support of future expansions, acknowledges both the high-quality of kaolin products from The Great White Project and the certainty provided through securing an offtake from this new, large source of kaolin supply.” Added Katsiouleris.
The agreement supersedes the Heads of Agreement signed previously and secures the binding offtake commitments required to support its expanded Stage 1A+ production and further progress towards a final investment decision.
Additionally, Peak Rare Earths Limited (ASX: PEK) has announced the signing of a non-binding indicative lenders consortium term sheet as part of its project financing process for the Ngualla Rare Earth Project.
The term sheet underpins a complete debt solution for the Ngualla Project with aggregate debt of US$176.6M.
Key aspects of the term sheet include:
- A two-tranche, senior secured project finance facility incorporating:
– a covered tranche supported by political and commercial risk insurance
– an uncovered tranche (consisting of both USD and Tanzanian Shillings) - Facility tenor of up to nine years including a grace period for construction and ramp up
- Provision for a cost overrun facility
- Market standard debt covenants
New exploration and development
KEFI Gold and Copper (AIM: KEFI) has provided an update for the Tulu Kapi Gold Project, Saudi Arabia. Progress is being made with the intense early works programme that will take Tulu Kapi through to September 2024, and provide the basis for full financial close and commencement of major works in October 2024, ahead of commissioning of production in mid-2026.
The dismantling of the old exploration camp is progressing and the planned security system is being installed, including private on-site security, with permanent off-site government protection. Site inspections confirm progress as expected.
Recently appointed senior project manager, Jacques Kruger, has further optimized the overall development schedule with principal contractor Lycopodium in preparation for the final confirmations for fixed-price-lump-sum components, which is a precondition for signing all project financing definitive documentation.
Meanwhile, White Cliff Minerals Limited (ASX: WCN) has announced that widespread, IOCG-U polymetallic, mineralization has been visually observed during the first week of its maiden fieldwork programme at its Great Bear Lake U-Cu-Au-Ag Project in northern Canada.
Ongoing heli-supported field observations have confirmed the presence of widespread high-grade IOCG and epithermal mineralization, some with potentially significant strike lengths, the new discoveries at Great Bear Lake include the Glacier prospect, a large outcropping IOCG mineralized system identified over more than 1,100m of strike to date, 1km northeast of the historic Echo Bay Mine.
Other news
KEFI (AIM: KEFI) has also announced the appointment of Addis Alemayehou as an independent non-executive director of the company with effect from the closing of the company’s annual general meeting on 22 July 2024.
Harry Anagnostaras-Adams, KEFI’s executive chairman, commented, “I am delighted that Addis will be joining the KEFI board. His experience and relationships in Ethiopia will be invaluable as we advance our high-grade Tulu Kapi Gold Project. Addis’ appointment is also part of our ongoing commitment to have local participation in both management and financing at all levels of our projects.”
Mr. Addis Alemayehou, who is based in Ethiopia, is the chairman of Kazana Group, a diversified investment firm dedicated to early-stage, high-impact, tech-driven, and climate-smart initiatives, aiming to generate mass employment in Africa.
Mr. Alemayehou is well known for having launched ventures in Ethiopia such as Kana TV, the country’s first dubbed television station; Afro FM, Ethiopia’s inaugural English-language radio station; and 251 Communications, a leading Ethiopian communications company.
