New Century Resources Ltd. said Sept. 3 that it signed a binding term sheet with National Australia Bank for a A$40 million debt facility, which the company plans to use to accelerate the development of its Century zinc-lead project in Queensland, Australia.
The facility has a two-year term and bears interest at 5.25% per year.
New Century plans to ramp up operations at the project in two phases.
The initial phase involves refurbishing the southern train of the processing plant to raise its capacity to 8 million tonnes per year, while the second phase covers refurbishing the northern train to bring the plant to a full capacity of 15 Mt/y. New Century allocated A$50 million for the first phase, while an additional A$63 million is required for the second phase, which is scheduled to be completed in the fourth quarter of 2019.
A feasibility study for the planned restart of Century estimated a posttax net present value, discounted at 8%, of A$1.31 billion and an internal rate of return of 270% over a 6.3-year mine life.