True North Copper is solidifying its dream of becoming a producer at the Cloncurry project in north-west Queensland.
The company has met the required conditions to unlock the first tranche of a loan facility with US-based Nebari Holdings and its Natural Resources Credit Fund II.
This will enable True North to draw down $US18 million ($27.55 million) of the $US28 million ($42.85 million) facility, with $13.47 million to be held in a term deposit for the Cloncurry rehabilitation bond.
The company will also repay a $5.32 million short-term working capital loan with Dyda Property Management.
True North managing director Marty Costello said things were shaping up nicely for the company.
“We are looking forward to partnering with Nebari as we bring our Cloncurry copper project into production,” he said.
“We are incredibly proud to be working alongside international top-tier funding partners like Nebari and Tembo Capital and our toll processing and offtake partner Glencore International AG, who are all global leaders in their field.”
In January, Glencore and True North signed a binding offtake and toll-treating agreement, which will see Glencore toll treat up to one million tonnes of copper per year from the Cloncurry project.
True North’s concentrate will be processed at the Mt Isa smelter, located about 120km away. The offtake sales price will be in line with market prices for copper concentrate, including adjustments for penalties, treatment and refining charges.
True North aims to commence copper production at the Cloncurry project by combining the Great Australia mine reserve and the Wallace North resource into a single mining operation, with mine plans set to be announced in early 2024.