Aim-listed Bushveld Minerals’ coal and energy subsidiary Lemur Holdings has signed a project preparation finance facility agreement with the Development Bank of Southern Africa (DBSA) for $1-million, which will be used for the development of the Imaloto project, in Madagascar.
The loan will enable Lemur to reach financial close on the project, which is an integrated thermal coal mining and independent power producer project.
“We believe the funding will help us finalise our objective of achieving financial close and providing reliable baseload power to southern Madagascar. [The] DBSA’s participation in the development of the Imaloto project highlights the economic potential of our project, as well as the developmental benefits it offers to southwestern Madagascar,” commented Lemur CEO Prince Nyati.
Meanwhile, the company had a bankable feasibility study on the opencast project completed by Sinohydro and an optimisation exercise was under way to consider the inclusion of underground mining within the development plan.
Lemur was also progressing engineering, procurement and construction contract negotiations for the power plant.
The company expects to complete social- and environmental-impact assessment fieldwork by the end of the second quarter.