Excelsior Mining has closed a $75m financing package to fund the development of its Gunnison copper project in Arizona, US.

The financing package with Triple Flag Mining Finance Bermuda includes a $65m copper metal stream and a concurrent $10m private placement of common shares of Excelsior.

As a result of the private placement, Triple Flag secured 13,818,977 Excelsior common shares. The stream component saw the company receive 3.5 million five-year common share purchase warrants.

Under an agreement signed in October, Triple Flag will be able to buy a percentage of the refined copper production from the Gunnison project at a price equal to 25% of the copper spot price.

Following the closure of the financing, Excelsior received an initial $10m of the $65m deposit under the stream agreement, as well as $10m proceeds of the equity placement.

Excelsior Mining president and CEO Stephen Twyerould said: “With this comprehensive financing package, Excelsior will initiate construction activities at the Gunnison copper project before year-end.

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“Excelsior expects to receive additional financing of $9.4m from affiliates of Greenstone Resources under a subscription agreement that was signed last month.”

“With the two crucial milestones of permitting and construction financing now behind us, we look forward to unlocking the remarkable economics of this project as we advance towards first copper production from the wellfield in 2019.”

Triple Flag will provide the remaining amount of the deposit in instalments.

Excelsior expects to receive additional financing of $9.4m from affiliates of Greenstone Resources under a subscription agreement that was signed last month.

Furthermore, the company’s board of directors approved the construction at the Gunnison project.

The company intends to commence construction activities at the project before the end of this year.

Gunnison is an in-situ recovery copper extraction project. Based on a feasibility study, the project is expected to have an after-tax net present value (NPV) of $807m and an internal rate of return (IRR) of 40%.