Alara Resources Ltd. unit Al Hadeetha Resources LLC entered into a €60 million loan with Qatar's SAMA Global Investment to develop the Washihi-Mazzaza copper project in Oman.
Alara said March 15 that the funds will be mainly used to fund construction of minesite infrastructure for a 1-million-tonne-per-annum copper processing plant at the project.
The company can also use the funds to develop other projects around the proposed plant including Mullaq and Al Ajal.
Following a 24-month grace period, Al Hadeetha will pay a quarterly fee equal to 1.5% per annum over a six-year term. Al Hadeetha will also have to pay an establishment fee of €1 million to SAMA. The loan will be secured over the company's mining license and related assets.
Alara Managing Director Justin Richard said the company is also considering other financing options for targeted project development opportunities.