Phosphates and potash company Centrex on Thursday announced credit approval from National Australia Bank (NAB) for a A$10-million secured financing package designated for the Ardmore mine, in north-west Queensland.
“Securing the support of a tier-1 bank is a powerful endorsement of the Ardmore mine’s potential and our company’s strategic growth plans,” said CEO and MD Robert Mencel.
“As we previously alluded . . . our strategic decision to strengthen our balance sheet has enabled us to pursue higher-quality sources of financing. This has not only lowered our overall financing costs but has also come with fewer stringent requirements, ensuring that the company remains unencumbered by any burdensome condition,” he added.
The NAB financing follows the A$8-million placement and A$2-million share purchase plan announced early this month, which underpinned the final investment decision for the Stage 1.5 expansion at Ardmore.
Upon completion of the expansion, Ardmore’s production run rate will increase from 240 000 t/y to 625 000 t/y by December. The higher production will not only lift revenues for Centrex, but will also lower costs.