BCI Minerals has progressed its funding arrangements with the Northern Australia Infrastructure Facility (NAIF) for the Mardie salt and potash project.
NAIF completed its strategic assessment of the project and has advised BCI that it has proceeded to the due diligence phase of the assessment process.
Following initial discussions with NAIF and BCI’s provision of information on Mardie and its development plans, the project has been assessed as having the potential to meet NAIF’s mandatory eligibility criteria, completing the strategic assessment stage.
While a decision to offer BCI a loan or provide financial assistance has not yet been made, the company continues to work closely with NAIF during the due diligence stage to develop a formal investment proposal – a precondition for the NAIF board to make an investment decision.
The Mardie project, on the Pilbara coast in Western Australia, involves the construction of infrastructure that includes a multi-user port facility, ponds, two processing plants, accommodation and supporting infrastructure.
BCI is looking for funding from NAIF – a $5 billion facility set up as an initiative of the Australian Government to provide loans to support and encourage infrastructure development on northern Australia.
The company has welcomed NAIF’s decision to progress Mardie to the next phase of its debt funding process, according to BCI managing director Alwyn Vorster.
“BCI is actively working on funding solutions for Mardie in parallel with the definitive feasibility study to allow timely development of the project,” he said
“BCI is also making solid progress in developing product offtake support, which will be an essential requirement of securing a funding solution.”
Vorster also alluded to the potential signing of non-binding memorandum of understanding’s with several salt end-users in Asia, allowing the company to achieve potential offtake agreements in the future.