Venture secures $15m for Tasmanian iron

Perth-based Venture Minerals has signed a $15 million debt finance deal with international bank BNP Paribas, which will ensure it is fully funded to production at its Riley direct shipping iron ore project in Tasmania.

Venture said the two year revolving line of credit was competitively priced and fully flexible, and would essentially be a standby working capital facility for the Riley operation.

The finance agreement follows Venture receiving a mining lease for Riley in December and the appointment of Shaw’s Contracting as preferred mining contractor.

Venture is aiming to establish itself at a 1 million tonne per year iron ore producer by the end of the year.

“Venture is now an emerging producer with a strong cash position, which combined with the above debt facility, sees the company fully funded into production on the Riley DSO project,” managing director Hamish Halliday said.

“Venture is very pleased to be able to attract the calibre of BNP Paribas as project financier, which is a testament to the quality and potential of Venture’s projects in northwest Tasmania.

At 1:30PM, WST, Venture Minerals shares were down almost 3 per cent, trading at 16.5 cents.