New Century progresses zinc mine restart

Perth-based New Century Resources has locked in a $58 million debt facility agreement with investment firm Sprott, to fund the restarting of operations at its Century zinc mine in Queensland.

New Century, which began trading on the ASX in July after completing a reverse takeover of Attila Resources, will use the funds to progress plant commissioning and mine development at Century, which was mothballed in 2015.

Sedgman is due to deliver a restart feasibility study on Century next month.

“New Century is very pleased to have secured this significant debt financing facility on attractive terms through Sprott, which is widely recognised as one of the world’s leading providers of finance to the natural resources sector,” chairman Evan Cranston said.

“This facility will allow the team to expedite its activities for the targeted restart of the Century zinc mine, with the funding used for the commissioning process and achievement of first production in 2018.”

Tamesis Partners advised New Century on the facility.

New Century shares were 1.3 per cent higher to $1.49 each ahead of the close of trade.