Galena Mining’s development of its Abra base metals project will go ahead, with full production of its lead-silver concentrate scheduled for the first quarter of the 2023 calendar year.
The decision has been made following the satisfaction of key conditions to draw in excess of US$30 million ($39 million) under the Taurus Debt Facilities.
According to a company statement, procurement of certain long-lead time items for the project will take place immediately.
The underground mining contractor is expected to initiate the portal and decline development in the third quarter of the 2021 calendar year, while physical on-site plant construction is expected to commence in the fourth quarter of 2021 calendar year.
Galena managing director Alex Molyneux welcomed the decision.
“I’m ecstatic that everything is now in place and we’ve been able to make the final investment decision for Abra,” he said.
“Galena is now poised to join the ranks of high margin Australian producers, benefitting from buoyant base metals markets.
“I’d particularly like to thank our hard-working team who have achieved so many project milestones to get to this point and will soon be joined by approximately 260 more colleagues over the construction phase.”
Galena also announced that current non-executive director Anthony James will transition to becoming managing director as the Abra project heads towards production.
According to the company, James is a mining engineer with considerable senior underground operational and development experience.
Galena’s current managing director, Alex Molyneux, will remain a director with responsibility for key corporate development initiatives and strategic relationships.
Company chairman Adrian Byass said the role transition would benefit the company into the future.
“As a board we’ve worked as a team to prioritise the needs of our flagship Abra base metals project,” he said.
“Alex and Tony have worked hand-in-hand to date to achieve significant technical and corporate milestones, and with Abra moving to production I’m pleased we can make a transition that moves our senior mining engineering capability to the fore.
“We thank Alex for his significant contributions thus far and wish Tony every success going forward.”
Abra is a lead-silver project located in the Gascoyne region of Western Australia between the towns of Newman and Meekatharra.