With a new labour deal in place, Sudbury's First Nickel Inc. is on the prowl for money to expand its Lockerby Mine.
The company announced Aug. 25 that it has entered into an engagement letter to appoint the Canadian branch of Société Générale (SocGen) and the Commonwealth Bank of Australia (CBA) to act as the lead arrangers for a senior secured project facillity loan of up to $30 million.
The proceeds are earmarked for the partial funding of the direct and indirect development and start-up costs at First Nickel's Lockerby Depth Project.
The company said it has had talks with many potential lenders, and the combination of SocGen and CBA was the right fit based on their long history of supporting mining projects and their expertise in the global commodities market.
“We are very pleased to establish a relationship with two of the world's leading banks,” said First Nickel president and CEO William Anderson in a statement. “Both banks understand our business very well and have long-established credentials in mine finance.”
Anderson called this step an “endorsement” of the Lockerby project and its operating team.
“It is a significant milestone for the company in structuring a cornerstone financing package for its capital plan.”
Anderson said another financing initiative will be announced soon to allow the company to stay on track to begin construction at Lockerby by year's end.
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