Avanti Mining gets preliminary commitments for C$640 million financing

By Lisa Kerner

Charlotte, N.C., April 19 - Avanti Mining Inc. entered into a mandate letter with five lenders for up to C$640 million of project financing to develop its Kitsault molybdenum mine, according to a company news release.

The funding includes C$560 million of 12-year senior debt plus an C$80 million eight-year standby cost overrun facility, if needed.

Interest on the financing is Libor based, loan repayments are semiannual, and there is a prepayment provision of a portion of excess free cash flow, according to Avanti.

The members of the lending group are UniCredit Bank AG, KfW IPEX-Bank GmbH, Export Development Canada, Korea Development Bank and Caterpillar Financial.

The mandate letter has the preliminary approval of each of the proposed lenders, but it requires the completion of lenders' due diligence, final credit approval and the negotiation and execution of a loan agreement under Ontario law.

Vancouver, B.C.-based Avanti is focused on acquiring, exploring and developing mineral resource projects.

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