Pilbara Minerals says it will make big cost savings after refinancing its existing debt facility, with continued backing from Clean Energy Finance Corporation and global bank BNP Paribas.
Pilbara Minerals says it will make big cost savings after refinancing its existing debt facility, with continued backing from Clean Energy Finance Corporation and global bank BNP Paribas.
The new $US110 million ($A153.4 million) senior secured debt facility will be used to fund the early redemption of Pilbara’s existing $US100 million ($A139.5 million) Nordic Bond.
Pilbara said the new finance facility would provide substantial cost savings compared to the Nordic Bond, with an interest rate of around 5 per cent per annum.
Both Clean Energy and BNP are existing lenders to Pilbara, including with Clean Energy having contributed $US15 million to the Nordic Bond.
Pilbara had secured the bond in 2017 to fund Stage 1 of the Pilgangoora lithium-tantalum project, located 120 kilometres from Port Hedland.
BNP has contributed a $US15 million working capital facility since 2018.
Pilbara managing director Ken Brinsden said the company was pleased with the continued support.
“(It represents) the first time that a lithium raw materials player of our size has attracted conventional, syndicated project financing at such a competitive cost,” he said.
“The new facilities are offered on very competitive terms, putting us in a very strong position to rise out the current soft market conditions and capitalise on the rebound in the lithium market, when that inevitably occurs.
“It is great to see the Australian government backing Australian lithium projects, as well as a major investment bank such as BNP Paribas, with both parties recognising the important role projects such as Pilgangoora play in the development of clean energy supply chains across the globe.”
He said Pilbara was targeting net zero emissions at its operations.
The company expects to be able to draw down on the finance facility in the current quarter.
Pilbara, which began production at Pilgangoora in 2019, says it is currently ramping up the project to nameplate capacity.
The 2 million tonne per annum operation could produce up to 330,000tpa of about 6 per cent spodumene concentrate and 321,000 pounds per annum of 5 per cent tantalite.
The West Perth-based company expects to increase its 250-strong workforce to around 310 people, once Pilgangoora begins operating at nameplate capacity on an ongoing basis.
Pilbara Minerals closed up 7.8 per cent today to trade at 37 cents per share.
