Cupric Canyon Capital and Khoemacau Copper Mines Announces Signing
Cupric Canyon Capital and Khoemacau Copper Mines announces the signing of US$565 million of funding for construction of the Khoemacau Copper Silver Project in Botswana
Gaborone / Cayman Islands – February 25, 2019 – Cupric Canyon Capital, the owner of the Khoemacau Copper Silver Project, is pleased to announce major progress towards the construction of what is to be a major copper and silver mine in northwest Botswana.
Cupric and Khoemacau (together referred to as the “Company”) announced the signing of a US$565 million project funding package to commence development of its high-quality Khoemacau copper silver underground mining project in Botswana. The financing highlights include:
• US$565 million of funding including a US$275 million senior debt facility from Red Kite Mine Finance (“RKMF”), a US$265 million silver stream from RGLD Gold AG (“RG AG”), a wholly owned subsidiary of Royal Gold, Inc. (“Royal Gold”), and a US$25 million subordinated debt facility from RG AG (the “Project Funding Package”).
• The Project Funding Package will be used for construction of the Company’s 3.6 million tonne per annum Starter Project at Khoemacau processing ore from the 91 million tonne resource1 at a head grade of 2.02% copper and 21.4g/t silver copper.
• The direct construction cost of the Starter Project is US$397 million over a two-year construction timeline. First copper concentrate production is expected in the first half of 2021, with initial annual production averaging 62,000 tonnes copper and 1.9 million ounces of silver.
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