Shares in Equinox Minerals (EQN-T) were a dime, or more than 18%, higher at 65 in brisk afternoon trading in Toronto on August 4, after the company announced that its has arranged financing for its Lumwana copper project in Zambia.
In all, a group of European, African and Australian commercial lenders, developmental finance institutions, and export credit agencies have agreed to provide US$305 million worth of senior and subordinated loans to build the proposed mine.
That includes US$255 million of the project’s US$285 million senior financing requirements, and a US$50 million subordinated loan. The company is in talks aimed at securing the balance of the proposed senior facility. The documentation and diligence process is underway.
Equinox will also provide additional equity to advance the project.
Lumwana is expected to produce an average of 125,000 tonnes of copper per year over 18 years. At last count, measured and indicated resources totalled 269 million tonnes running 0.8% copper. First production is slated for 2007.
Equinox recently inked a letter of intent to sell a portion of Lumwana’s copper concentrate to Namibian-based Ongopolo Mining & Processing. Earlier this summer, Equinox signed a similar letter with South African copper producer Palabora Mining.
Palabora, which operates a mine and smelter in the eastern part of the Northern province, is seeking smelter feed as it converted from an 81,000-tonne-per-day open-pit mine to a 30,000-tonne-per-day bulk underground mine in 2003.
Equinox hopes to finalize both deals by the end of the year.
Meanwhile, in the boardroom, Equinox recently appointed Sam Jonah as non-executive chairman.
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