True North Copper (TNC) is a Queensland-based copper and critical minerals mining company. Credit: Masmikha via Shutterstock.com.

TNC, an Australian mining company, has secured a four-year $28m (A$42m) senior secured loan facility with Nebari Natural Resources Credit Fund II LP.

This financial boost is aimed at advancing the company’s Cloncurry Copper Project (CCP) in Queensland.

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The loan will be disbursed in two tranches: $18m available immediately and a further $10m contingent on the start of commercial sulphide ore production at the CCP.

TNC plans to utilise the initial funds to settle a short-term working capital loan from Dyda Property Management and refinance the CCP’s rehabilitation bond.

Additionally, the loan will support working capital needs under a forthcoming mine plan for the CCP, which requires joint approval from TNC and Nebari.

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In conjunction with the loan, TNC agreed to issue 46,383,038 warrants to Nebari at A$0.1177 each, exercisable over a 48-month period and convertible into TNC shares on a one-for-one basis upon exercise.

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The issuance of the first tranche of warrants will utilise TNC’s existing placement capacity, while the second tranche will be subject to shareholder approval.

TN managing director Marty Costello said: “We are very pleased to have secured the support of Nebari Natural Resources Fund following a rigorous due diligence and funding process.

“Nebari Natural Resources Fund are a highly respected and experienced financier of mining projects globally. We are thrilled to announce we have secured this financing with Nebari and it marks a significant milestone for our company.

“These funds will be used to refinance the environmental bond, as the key next step in our mining restart at the Cloncurry Copper Project, as well as provide working and restart capital. TNC will soon announce the approved Cloncurry Copper Project mine plan.

“We are incredibly excited about restarting mining and bringing the Cloncurry Copper Project into production, at a time where the world’s copper supply is really tightening up and the metal price is rising.”