PERTH (miningweekly.com) – ASX-listed metals developer Centaurus Metals has appointed resource financier RMB Resources to arrange for a A$6-million working capital facility to underpin the development of the Candonga iron-ore project, in Brazil.
Funds would also be used to support ongoing exploration programmes in Brazil, including at the Candonga West project.
Centaurus told shareholders on Tuesday that subject to the completion of a due diligence in January, an approved offer of finance was expected by the end of February.
“Candonga is a quality project which will generate strong cash flows due to its very low cash costs. RMB’s initial feedback on the project has been positive, and we will now work with them to assist their due diligence process for the facility to allow us to commit to development of the project in the shortest possible timeframe,” MD Darren Gordon noted.
Production at Candonga would start in the second quarter of next year, at a rate of 300 000 t/y under a trial mining licence, which was lodged in April this year. Centaurus told shareholders that the licensing process was well advanced, and final approval of the trial mining licence was expected in the first quarter of 2015.
The project was expected to require a capital investment of A$3.6-million, and would have a life-of-mine cash cost of A$14.90/t.