Aurelia Metals Limited has acquired a financial solution for the Federation Project that includes A$100 million in new senior secured financing and a $40 million fully underwritten equity raise.
With the remobilisation of the mining contractor starting in the June Quarter of 2023, the new financial structure will enable the restart of the development of the Federation Project, one of the highest-grade base metals development projects in Australia.
In October 2022, Aurelia published the Federation Feasibility, confirming that Federation was a top-notch, cost-effective development project that made use of Aurelia’s current critical infrastructure assets in the Cobar Basin.
The study was updated in April 2023, with enhancements in mine planning, ore flows for processing, capital scope refinement and definition, and further leveraging the assets and infrastructure of the Company’s neighbouring Hera operation, which was recently placed on care and maintenance. The optimisation has reduced cost escalation and enabled faster access to first stope ore production, which has contributed positively to the project’s worth.
Federation Project development has been halted since October 2022, pending confirmation of the funding solution. Aurelia will now begin mobilisation efforts in the June quarter of 2023.
Final facility documentation for the new Facilities has been executive with Trafigura Pte Ltd. The new Facilities are divided into two tranches:
- US$24M (~A$36M) Loan Note Advance contributing to funding the construction of the Federation Project; and
- A$65M Bond Facility to provide rehabilitation bonding
A part of the proceeds will be utilised to replace the Company’s current debt facilities:
- A$9M Term Loan
- A$57M Guarantee Facility
Releases from the Guarantee Facility are being replaced. The facility now has A$46 million in restricted cash.
The Trafigura deal followed a wide financing procedure that enabled Aurelia to get competitively priced credit with no hedging obligations and early repayment flexibility to permit the resumption of the Federation Project.
BofA Securities and BurnVoir Corporate Finance have provided loan structuring services to Aurelia.
