Fairstar Resources is pursuing a $300 million debt funding deal for its Steeple Hill iron ore development, after previously seeking a joint venture with equity investors.
The company said today it has conditional approval for an "innovative debt funding instrument" from international lenders, but did not provide details.
The funding is conditional on the company finalising three major agreements: a native title agreement, a mining lease over the tenements and off-take agreements “for a substantial part of the ore”.
The company said there would be no joint venture, with its current shareholders retaining control.
Managing director Kevin Robertson said Fairstar has rigorously evaluated a number of potential local and international investor proposals over the past 12 months.
“Our overriding priority has been to ensure that Fairstar shareholders maintain absolute control over the company and the project to maximise returns.”
The company’s share price spiked today to 4.4 cents, after languishing at one-year lows of about 3.6 cents.