24/09/2013 - 09:00

AusAmerican lines up $10m debt facility

24/09/2013 - 09:00

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Perth-based explorer Australian-American Mining Corporation has received a $10 million debt finance term sheet from a private lender as it seeks to bring its American copper interests to production.

AusAmerican lines up $10m debt facility

Perth-based explorer Australian-American Mining Corporation has received a $10 million debt finance term sheet from a private lender as it seeks to bring its American copper interests to production.

AusAmerican announced earlier this month that it had entered into a letter of intent with US company Taylor Western Resources to acquire a 50 per cent interest in the Victoria Copper Mine project in Nevada.

The mine was discovered and explored underground in the 1940s but there has been no production since 1981.

AusAmerican said today that the prospective debt provider, a private lender based in the American state of Utah, had been active in providing asset-backed lending for a number of years and had indicated that funds would be made available promptly upon the completion of due diligence.

“Since acquiring the right to earn a 50 per cent joint venture interest and management control of the Victoria Mine, we have been engaged with a number of parties for non-dilutionary project finance,” AusAmerican managing director Richard Holmes said.

“This debt facility would provide AusAmerican with the capital required to bring the Victoria Mine back into production and make the necessary payments to the vendors.”

AusAmerican’s portfolio includes copper, gold, uranium and specialty metals projects across the American states of New Mexico, Nevada, Arizona and Texas.

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