New Century Resources has secured the final piece of funding it requires to complete the restart of the Century zinc mine in Queensland.
The Century mine restart, based on processing of the site’s tailings deposit, remains on track for the planned third quarter 2018 launch after New Century today revealed a fully underwritten $40 million equity raising.
New Century will use the funds to restart the operation and pursue a strategy of becoming a leading Australian zinc producer.
The restart is well advanced, according to New Century, with refurbishment and commissioning costs, as well as the project schedule, in line with last November’s feasibility study.
First production is expected at an initial processing capacity of 8Mt/y, however, New Century plans to invest a further $63 million over 15 months to ramp-up operations to 15Mt/y.
New Century is working on an expansion prefeasibility study focused on tenements at the Century property that contain mineral resources with potential to extend the life of the operation beyond the tailings deposit.
“New Century is well positioned for the near-term evolution from mine developer to a globally significant zinc producer,” the company said in an ASX announcement.
The offer will see institutional investors take around 36.3 million shares in New Century for $1.15 each.