Australia-based Tiger Resources has signed an agreement to secure a $162.5m investment to expand its Kipoi Copper project in the Katanga Province of the Democratic Republic of Congo (DRC).
Under the agreement, Taurus Mining Finance Fund (Taurus) will provide $122m and a $40.5m loan would be offered by the World Bank Group’s private lending arm International Finance (IFC).
According to Tiger Resources, the latest investment will provide the company with a complete solution to the two-tranche funding package of $137.5m refinance facility, as well as the $25m expansion facility announced in July.
The financing facility will provide the required expansion capital for the debottlenecking initiative that was announced earlier to boost capacity of the company’s Solvent Extraction Electrowinning plant (SXEW) from the existing 25,000tpa to 32,500tpa copper cathode.
The mining company aims to complete the expansion of Kipoi Copper by November 2016.
IFC has started its 30-day public disclosure period after obtaining approval from its credit committee and has conducted detailed due-diligence on the project.
Taurus has concluded its required due diligence and credit approval processes.
Mineral resources for the Kipoi Copper project, located 75km north-west of Lubumbashi, were 938,000t of copper.
During stage 1 development, the company exploited the high-grade zone of copper mineralisation at Kipoi Central, in which a heavy media separation (HMS) plant was in operation from 2011 to 2014.
Tiger Resources began production of copper cathode at Kipoi in May 2014 under stage 2.