Australia's Develop Global bags $400 million funding, supply deals from Trafigura
Australia's Develop Global bags $400 million funding, supply deals from Trafigura June 10 (Reuters) - Australian diversified miner Develop Global DVP.AX said on Wednesday it had secured a $400 million financing package and supply agreements from commodities trader Trafigura for its Sulphur Springs copper-zinc and Pioneer Dome lithium projects.
Here are some more details:
The financing package, consisting of a $350 million loan facility and a $50 million warrant package, will help the company fund development of the two projects in Western Australia.
The financing arrangement will also be used to refinance the existing Woodlawn facility.
Under the offtake agreements, Trafigura will receive copper and zinc concentrates from Sulphur Springs and lithium ore products from Pioneer Dome.
Develop Global approved final investment decisions for both the projects, committing capital expenditure of A$450 million ($316.2 million) and A$40 million to Sulphur Springs and Pioneer Dome, respectively.
Shares of Develop Global rose as much as 4.1% to A$6.65, their highest level since June 3. The broader S&P/ASX 200 benchmark index .AXJO was up 0.6%.
($1 = 1.4233 Australian dollars)
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Subhranshu Sahu)
((JasmeenAraIslam.Shaikh@thomsonreuters.com;))
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