New Century Resources has secured $US45 million ($58 million) in funding for the restart of the Century zinc mine in Queensland.
Perth-based New Century is reviving the mine at a time when zinc prices have reached 10-year highs as global supply of the base metal has tightened. Zinc improved by 1.5 per cent in overnight trading to finish at $US3352 a tonne.
The company has signed a term sheet for the three-year debt facility with global resources fund, Sprott Resource Lending. It will use the funds to progress development of the Century operation towards the planned restart.
New Century said the funding put the company on track to become a “globally significant zinc producer” in 2018.
The company, through contractor Sedgman, expects to release a feasibility study for the Century restart next month.
New Century executive chairman Evan Cranston said the debt facility was secured on attractive terms.
“The facility will allow the team to expedite its activities for the targeted restart of the Century zinc mine, with the funding used for the commissioning process and achievement of first production in 2018,” Cranston said.
ASX-listed New Century owns a 70 per cent share of the Century operation, with an option to lift its ownership to 100 per cent. The company recently said it intended to pursue Century Bull’s 30 per cent share in the operation to take complete ownership.