Receiving a $150 million loan from the Northern Australia Infrastructure Facility (NAIF) is a significant win for De Grey Mining and its Hemi gold project.
The NAIF is proving a key linchpin for emerging critical minerals projects but has been less involved in gold projects, with Hemi the only greenfield gold investment from the lending body to date.
The $150 million NAIF loan forms part of a $1 billion debt facility being formalised with commercial banks, with an additional $130 million cost overrun facility set to be included in the funding package.
De Grey closed a $600 million capital raise in May, which was said to unlock further financing discussions.
Across the financing streams, De Grey continues to solidify the foundations for Hemi construction, which the company hopes to commence in the next 12 months following final environmental approvals and a final investment decision.
The NAIF funding includes terms necessitating De Grey’s continued engagement with the Kariyarra People, the Native Title holders of the land on which Hemi is located.
“Hemi is located on Kariyarra lands and the development of the project will provide the Kariyarra People with important economic, employment and vocational opportunities,” De Grey managing director Glenn Jardine said.
“It will also support the preservation of Aboriginal cultural heritage and land management through the establishment of a ranger program within Kariyarra country around the Hemi area.”
Jardine highlighted the importance of the Hemi project, which has the potential to be the Pilbara region’s first Tier 1 gold mine, and Australia’s first new Tier 1 gold mine in years.
“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,” Jardine said.
“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.”
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