Shares in Sandfire Resources (ASX:SFR) jumped to one of the best performers in the S&P/ASX200 yesterday, after the minerals explorer said it would borrow $360 million to advance its wholly owned DeGrussa copper-gold project in Western Australia.
Sandfire says following receipt of a credit-approved term sheet from ANZ Banking Group (ASX:ANZ) due diligence has begun for the underwritten secured debt.
The announcement comes after the completion of DeGrussa’s Definitive Feasibility Study last month.
First mining at DeGrussa has already begun and Sandfire believes the project is on track to produce its first high-grade copper ore at the start of 2012.
Yesterday shares in Sandfire Resources gained 4.05 per cent to close at $7.96.
In the first half of its 2011 financial year, Sandfire Resources reported a net loss of $35.2 million.
