Minerals explorer Equinox Minerals Ltd
(ASX:EQN) says it has secured up to US$580 million in funding from leading commercial banks to help pay off debt associated with the development of the company’s Lumwana copper mine in Zambia.
Equinox says it has secured a US$400 million corporate loan from Standard Bank, Standard Chartered Bank, Industrial and Commercial Bank of China and BNP Paribas.
The company can also request to increase the amount of the loan by US$180 million subject to approval from lenders.
The funds will be used to repay a US$582 million debt facility set up to develop Lumwana in 2006, which as at September 30 had US$350 million owing.
CEO Craig Williams says refinancing the company’s existing project debt facilities with a corporate loan reflects its transition from a developer to an operator of a world class mining asset.
Equinox Minerals posted a profit of $172.68 million for 2008.
