NQ Minerals Plc said March 27 that it secured a US$10 million loan facility with a U.S.-based private equity firm to fund the development and operation of the Hellyer zinc-lead-silver project in Tasmania, Australia.
The facility bears an annual interest rate of 12%, repayable within three years. The loan will be secured over the company's assets and its subsidiaries.
NQ Minerals also agreed to sell the financier 30% of the first 8 million ounces of payable silver recovered from Hellyer and 10% of the payable silver thereafter for the life of mine.
The price payable by the financier is the lesser of US$6 per ounce of refined silver or 80% of the market price of silver. These figures are subject to a minimum of 17,500 ounces of refined silver per month once Hellyer reaches commercial production.
According to the company, the silver purchase agreement will remain in place until all minerals are extracted from Hellyer, or 40 years after deal execution, with an option to extend for another 10 years.