28/07/2014 - 12:46

BlackRock to invest $US12m in Avanco

28/07/2014 - 12:46

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Perth based copper explorer Avanco Resources has finalised a deal with global resources funds management giant BlackRock, which will provide $US12 million to fund development of the Antas North site in Brazil.

BlackRock to invest $US12m in Avanco
Avanco has announced funding for development in Brazil

Perth based copper explorer Avanco Resources has finalised a deal with global resources funds management giant BlackRock, which will provide $US12 million to fund development of the Antas North site in Brazil.

Avanco today announced it had finalised a royalty financing agreement, first announced in October last year, with BlackRock's World Mining Trust, which will provide the Perth-based explorer with a hybrid of venture capital funding and small business loans.

Under terms of the deal, BlackRock will earn a 25 per cent return on gold revenue and 2 per cent on all other metals from the Antas North mine.

Avanco is aiming to raise a total of $70 million for the project, projected to produce 12,000 tonnes of copper per annum at completion of stage one.

The company raised $23 million in May through a share placement lead managed by Bell Potter Securities

Brazilian bank Banco Votorantim has committed $30 million to the project and is acting as the lead for syndication of the remaining $28 million.

Avanco is planning to fund its larger Pedra Branca copper project with cash flows from Antas North.

Avanco had moved 2.7 per cent down today to 10.7 cents at the time of writing.

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