Sohar International Bank has provided $15m of funding for finalising the construction of Al Hadeetha Resources’ copper and gold joint venture, according to Al Hadeetha.
The Omani holding company received the funds from the bank, which provided the project’s initial loan. Al Hadeetha is a joint venture, with Australian miner Alara Resources holding 51%. The project is expected to be commissioned in September of this year.
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Atmavireshwar Sthapak, Alara managing director said: “We are thrilled to have put the additional finance facility in place […] It ensures [the joint venture] has the finance required to prepare to operate this exciting asset ahead of mine output revenues starting to flow.
“With a raft of construction tasks already complete, copper product from the Al Wash-hi Majaza Copper-Gold Project will soon be making its way to clients. When it does so, Alara will transition from a pure explorer into a resources company holding a 51% stake in a new mine producing a key, in-demand base metal.”
The firm also outlined how the $15m will be divided, with around $8m going towards project-related consumables necessary for the plant’s commission. This includes vital spare part, and chemical reagents. Al Hadeetha will allocate the remaining $7m for general working capital for use on the likes of utility payments and other running costs.
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Elsewhere, the project’s 33KV power substation is already complete, and the mine is expected to operate for eleven years .Al Hadeetha had originally planned to finance the remainder via an offtake pre-payment. Instead, the additional $15m is being treated as an increase to the initial $49m startup loan, taking the total to be repaid to $64.3m.
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By GlobalDataAlara added: “Civil construction at the Project’s one million tonne per annum copper processing plant is approximately three-quarters complete, while mechanical, electrical and plumbing works have made substantial progress.”
