De Grey Mining has secured a $150 million loan from the Federal Government’s Northern Australia Infrastructure Facility (NAIF) to support the Hemi gold project in the Pilbara region of WA.
The NAIF loan will form part of a planned $1 billion senior debt facility, with credit-approved term sheets already in place from commercial banks to cover the remaining amount.
In addition, a $130 million cost overrun facility is included in the funding package, which remains on track for completion in the second half of 2024.
“We appreciate the strong support for the development of Hemi shown by NAIF and would like to acknowledge the important role played by the Minister for Resources and Northern Australia, Hon. Madeleine King MP, and the Special Envoy for Northern Australia, Luke Gosling OAM.,” De Grey managing director Glenn Jardine said.
“Hemi is an important project for the Pilbara region which will help provide commodity diversification and new mineral processing skills in what is already a mining heartland of Western Australia.
“The Hemi processing facility will be a strategic long-term piece of regional infrastructure with potential to process gold ores from the Pilbara and potentially from other parts of Northern Australia. “
As part of the NAIF agreement, De Grey will work closely with the Kariyarra People, the Native Title holders of the land, to create economic, employment, and vocational opportunities. The company plans to establish a ranger program within Kariyarra Country, supporting cultural heritage preservation and land management initiatives.
De Grey expects the Hemi gold project to bring new mineral processing skills to the Pilbara, complementing the region’s existing mining capability.
The company’s significant cash reserves, combined with the debt facilities, will enable De Grey to push towards a final investment decision for Hemi’s development. This will be dependent on the timing of final environmental approvals.
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