Talisman and Sandfire’s Monty a step closer to development

PERTH (miningweekly.com) – ASX-listed Talisman Mining has executed a debt finance mandate with Taurus Mining Finance Fund for the A$23-million required to develop the Monty copper/gold project, in Western Australia.

Talisman holds a 30% interest in the Monty project, with fellow-listed Sandfire Resources holding the remaining interest.

An earlier feasibility study into the project found that for a capital investment of A$90-million, Monty could deliver about 70 000 t of copper, 21 000 oz of gold and 288 000 oz of silver over a three-year period, following one year of access development.

Talisman told shareholders on Friday that the completion of the debt financing would remove one of the final hurdles to facilitate the development of the Monty project, with the final outstanding item, being regulatory approvals, expected by mid-year.

First production from Monty is expected in the December quarter of 2018.

“We are very pleased to have achieved another key milestone needed to start development at Monty by mandating Taurus as our preferred financier for Talisman’s share of development capital,” said Talisman MD Dan Madden.

“This selection followed a detailed engagement process with a wide range of potential project financiers. While conventional bank finance was expected to be available, and on attractive terms, Taurus was able to bring a competitive funding solution that importantly avoids any requirement for mandatory price hedging or specific equity issuance to accompany the project financing.”

The execution of a final finance facility remained conditional on a due diligence and payment of associated costs and fees, with a final agreement likely to be executed by the end of this quarter.