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Verdant Minerals receives debt facility for Ammaroo phosphate project

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World Fertilizer,

Verdant Minerals has announced that the Northern Australia Infrastructure Facility (NAIF) Board has provided a non-binding indicative term sheet for a long-term concessional NAIF debt facility for up to AUS$160 million for the Ammaroo phosphate project.

The NAIF indicative term sheet is subject to a number of conditions and terms, including:

  • Execution of offtake contracts with lender approved offtakers, covering the contracted offtake volumes, with a price mechanism to support forecast revenues over the project’s initial operating phase;
  • Finalising terms for senior debt funding for the remainder of the project debt;
  • Securing the balance of equity funding from acceptable equity partners;
  • Detailed due diligence on a range of project matters;
  • Concluding a cost benefit analysis in accordance with the provisions of the NAIF Investment Mandate, which will be important in determining the level of concessionality that NAIF can offer the project;
  • Evidence that all relevant environmental, native title and regulatory approvals and authorisations required to undertake the project are in place;
  • Negotiation and execution of project and facility documentation; and
  • Final NAIF credit approval and Board Investment Decision

Chris Tziolis, Managing Director of Verdant Minerals, said: “This is a significant milestone for the project and will assist in facilitating and enhancing ongoing discussions with providers of commercial debt, potential customers and development partners. Verdant Minerals is appreciative of the opportunity to work with NAIF on the development of the Ammaroo Phosphate Project. The issuance of the indicative term sheet and NAIF’s support to provide a long-tenure concessional loan, subject to meeting the conditions precedent, will secure a significant portion of the project’s debt funding. We wish to thank NAIF for their indicative support and we look forward to working with them over the coming months as we work to meet the conditions in the indicative term sheet and move towards a final investment decision.”

Laurie Walker, CEO of NAIF, said: “NAIF’s indication of this support is to assist Verdant to advance its discussions with other project counterparties and to satisfy conditions required to secure NAIF finances. This is a demonstration of how NAIF can work with stakeholders to help them understand how its concessional financing can support the development of a project which has the potential to provide substantial benefits to Northern Australia and the Northern Territory.”

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