De Grey Mining is set to receive a $150 million loan for the development of the Hemi Gold Project after a terms agreement with the Northern Australia Infrastructure Facility (NAIF).
The terms agreed with NAIF include a commitment by De Grey to continue to engage closely with the Kariyarra People, the Native Title holders of the land on which Hemi is located, and to drive positive outcomes for Traditional Owners.
The NAIF loan will form part of the lending syndicate, which is expected to provide a combined $1 billion senior debt facility and $130 million cost overrun facility. Together with De Grey’s existing cash balance, these facilities are expected to be sufficient to finance the development of Hemi.
Credit-approved terms from a range of domestic and international commercial banks have already been received and support the targeted funding levels for the debt facilities. The debt facilities include attractive terms consistent with the Tier 1 physical and economic forecasts for Hemi. De Grey is aiming to finalise documentation for the debt facilities in December 2024.
De Grey’s Managing Director, Glenn Jardine, said, “We appreciate the strong support for the development of Hemi shown by NAIF and would like to acknowledge the important role played by the Minister for Resources and Northern Australia, Hon. Madeleine King MP and the Special Envoy for Northern Australia, Luke Gosling OAM.
“Hemi is an important project for the Pilbara region which will help provide commodity diversification and new mineral processing skills in what is already a mining heartland of Western Australia.”
Mr Jardine said the Hemi processing facility will be a strategic long-term piece of regional infrastructure, with potential to process gold ores from the Pilbara and potentially from other parts of Northern Australia.
“Hemi is located on Kariyarra lands, and the development of the project will provide the Kariyarra People with important economic, employment and vocational opportunities. It will also support the preservation of Aboriginal cultural heritage and land management through the establishment of a ranger program within Kariyarra Country around the Hemi area.
“With the support of NAIF, our commercial lending syndicate and a large existing cash balance, we expect to be able to complete the project financing for Hemi in the current half 2024. A final investment decision will then depend on the timing of the receipt of final environmental approvals.”
Featured image: Brian A Jackson/shutterstock.com
