Canada-based Avanti Mining has received a mines act permit (M-10) from the British Columbia Ministry of Energy and Mines to construct the C$812m ($748m) Kitsault molybdenum mine, near Prince Rupert in British Columbia.
Following the approval, Avanti plans to start construction in 2015 and begin production by 2017.
The Kitsault mine project has an estimated reserve of 232.5 million tonnes grading 0.081% molybdenum and containing 368 million pounds of recoverable molybdenum.
During the construction period, the company will employ around 700 people, with 300 full-time positions available during operations, which are estimated to last for 14 years.
Avanti Mining CEO and president Gordon J Bogden said the company is pleased with the decision by the Chief Inspector of Mines and the issuance of the amendment to its mines act permit.
"This is a very significant milestone for the Kitsault molybdenum project. Further, it is a forerunner for other corollary leases and licenses that are anticipated within a few days, and which will allow us to commence road and camp construction at site," Bogden said.
"Avanti's pre-construction funding was secured in December 2013 in the form of a $50m loan from Resource Capital Funds. In the meantime, Avanti continues its project debt negotiations with its banking syndicate while it explores in parallel a number of other financing sources, such as a sale of a silver stream, and investment by a strategic partner."
An environmental assessment certificate was issued to the Kitsault mine project by the province of British Columbia in March 2013.
Avanti is now awaiting a federal environmental assessment and rest of secondary construction-related approvals.
Image: Avanti Mining expects to start production at the Kitsault mine in British Columbia by 2017. Photo: courtesy of Avanti Mining.