Image Resources’ $50m Boonanarring project fully funded

Image Resources’ Boonanarring zircon mineral sands project, around 80km north of Perth, is fully funded following satisfaction of a $50 million loan.

First production is expected to commence by the fourth quarter of 2018 following construction and commissioning of the project’s processing plant .

Image entered into a loan note subscription agreement (LNSA) with companies Pala Investments and Castlelake to raise $50 million on March 8, with construction commencing on March 14.

The loan note facility was subject to conditions such as the finalisation of key contacts for the construction and operation of Boonanarring project management; structural, mechanical, piping, electrical and instrumentation construction; and several more, all of which have now been fulfilled.

The Boonanarring project is considered one of the highest-grade undeveloped mineral sands projects in Australia, and is rich with zircon.

Image managing director Patrick Mutz said that satisfying conditions of the loan facility represented a “very significant milestone” for the company.

“[It] removes the final hurdle with respect to receipt of the balance of capital funds required to complete the construction and commissioning of the Boonanarring project,” Mutz said.

Last month, the company announced that as part of project development, the Boonanarring project would make use of a solar farm to be supplied and constructed by Sunrise Energy Group.

With construction expected to start early next year, it is expected to provide up to 25 per cent of Image’s electricity needs for the project.