Ivanplats receives last prepayment in $300m streaming agreement
TSX-listed Ivanhoe Mines says its South African subsidiary, Ivanplats, has received the second and final prepayment of a $300-million streaming agreement.
Ivanplats concluded an in-stream financing agreement with Orion Mine Finance and then Nomad Royalty Company, now Sandstorm Gold Royalties, for its Platreef palladium and other precious and base metals project in Limpopo.
This included a $200-million gold streaming facility and a $100-million palladium and platinum streaming facility.
Ivanplats received the first prepayment of $75-million in December last year.
The fully realised stream agreements allow Ivanplats to advance Platreef’s ongoing Phase 1 construction activities, which have an initial capital cost of $488-million.
Moreover, Ivanplats also signed updated engagement letters with its mandated lead arrangers, Société Générale and Nedbank, to increase the Platreef project senior debt facility from $120-million to $150-million.
The expanded facility will provide further optionality in terms of project financing, and limit potential equity contributions for Platreef’s Phase 1 development.
“Platreef is the world's greatest precious metals deposit under development, with a peerless endowment of palladium, rhodium, platinum and gold, as well as highly significant quantities of strategic 'electric' metals in nickel and copper.
“The Phase 1 mine marks the beginning of a multi-stage, multi-generational mining complex underpinned by vast, high-grade resources and immense, untapped exploration upside,” says Ivanhoe co-chairperson Robert Friedland.
Future expansions of the project to 12-million tonnes of ore a year and beyond would position Platreef among the world’s largest and lowest-cost nickel and platinum group metals mines – producing more than 24 000 t of nickel and 1.1-million ounces of palladium, rhodium, platinum and gold a year.
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