US$10 million investment to advance Bel Air Bauxite Project
Alufer advised that it has drawn down on the first tranche of US$6 million (of the US$10 million available) under the Facility. While the terms of the Facility are confidential, the loan has a 12 month term, extendable to up to 18 months at the request of the Company.
The Facility funds will be used to cover the completion of the Mining Convention process and to finalise the additional social and environmental studies and pre-construction technical work. This preparatory work will ensure that upon securing Construction Financing, Alufer will be ready to commence construction immediately.
Under the terms of the Facility, Pala has also agreed an option to participate in up to US$30 million of the Construction Financing. Alufer is working with Pala, and other strategic investors and institutions, to finalise the Construction Financing during 2015.
Danny Keating, Chief Executive Officer of Alufer, commented;
“Closing the bridge facility with Pala, a leading mining investment fund, is testament to the quality and potential of the Bel Air Project, its robust economics and advantageous location close to the coast.
The Facility is the latest in a series of important milestones for Alufer and is an essential step in securing the Construction Financing. We are excited that Pala intends to participate in the Financing and we look forward to working with them further as the Company finalises the Construction Financing in the near-term to meet our goal of transitioning to a bauxite producer.”