De Grey Mining Limited (ASX:DEG) has received strong interest from potential lenders for Project debt funding for the Mallina Gold Project in Western Australia.
The company has received non-binding proposals from 14 leading banks and financial institutions for the traditional project debt funding component of an overall Project development financing package.
The majority of institutions have indicated the Project supports traditional debt funding capacity of approximately A$800 million based on De Grey’s September 2022 PFS.
The company will consider the optimal level of debt funding within an overall financing package.
The indicative commercial terms were reflective of the high quality of the Project, detailed Project studies completed to date and favourable jurisdiction in Western Australia.
An independent technical consultant has been appointed to support the project financing process which will continue in parallel with the DFS targeted for completion in mid-2023.
The project financing process is expected to conclude in the second half of 2023.
Azure Capital is acting as corporate and debt financing advisor to De Grey and Wright Legal is acting as the Company’s debt legal advisor.
“We’ve been heartened by the strong response to our request for traditional project financing proposals for the Mallina Gold Project,” Chief Financial Officer, Peter Canterbury, said.
“A range of indicative proposals have been received from highly regarded financial institutions which have significant experience in the mining sector. The company feels confident that it can deliver an attractive funding package for the development of the Project, subject to a Final Investment Decision by the De Grey Board.
“During 2023 we will further assess and progress various debt, equity and other strategic funding sources available to determine the optimum financing structure to deliver the greatest long-term value for De Grey shareholders from the Tier 1 discovery at Hemi.”
For further information please visit: https://degreymining.com.au/
