Altura Mining gets $110m funding to develop Pilgangoora project
Altura Mining has secured a $110m senior debt facility to fund development of its Pilgangoora Lithium project in Western Australia.
The company signed a loan note subscription agreement (LNSA) with investment management groups, Magy, Pala Investments and CarVal Investors in relation to the funding.
Altura will receive the funding in two tranches, with the first tranche of around $33m to be arranged in the first week of next month, and the second tranche before 27 September this year.
According to the company, the project is at an advanced stage, with earthworks and construction having started in March, while commissioning is set to take place in the first quarter of next year.
Funding will be used to complete construction and commissioning, with production and sales following.
Earlier this month, Altura signed five-year offtake agreements for a minimum of 200,000t a year of spodumene to be produced from the project.
The offtake agreement was signed with Chinese battery producer Shaanxi J&R Optimum Energy, while contract terms were revised with Lionergy.
Completion of the LNSA comes after an extensive due diligence process on the project, which is said to have an extensive mine-life.
Altura expects significant returns through offtake partnerships, low-cost operations, and product pricing.