Next step for Sandfire, Talisman’s Monty

Resources hopeful Talisman Mining has secured a $23 million debt financing agreement to fund the Monty copper and gold project which is to be built in a joint venture with Sandfire Resources.

It follows a feasibility study for the project released in April and granting of a mining lease for the deposit, part of Talisman’s Springfield project located near Sandfire’s Degrussa in the Gascoyne.

The $23 million will be sourced from Taurus Mining Finance Fund, which Talisman said had a very competitive cost of debt and flexibility around repayment timing and hedging requirements.

Sandfire will pay for 70 per cent of the project, which has a a total value of around $75 million, while copper from Monty will be processed at Sandfire’s Degrussa operation.

Talisman managing director Dan Madden said it was a key milestone in the development of the project, which the company predicted would receive final approvals in the middle of this year.

“This selection (of Taurus) followed a detailed engagement process with a wide range of potential project financiers,” Mr Madden said.

“While conventional bank finance was expected to be available, and on attractive terms, Taurus was able to bring a competitive funding solution that importantly avoids any requirement for mandatory price hedging or specific equity issuance to accompany the project financing.”

Shares in Talisman were 6.5 per cent lower at 29 cents each at the time of writing.