Perth-based junior Heavy Minerals has secured Dutch government-backed project finance support for the potential development of its Port Gregory garnet project in Western Australia.
The company received a letter of support from Atradius Dutch State Business which manages the government credit guarantee scheme on behalf of the Government of the Netherlands’ Export Credit Agency (ECA).
Heavy Minerals non-executive chairman Adam Schofield welcomed the support as an important milestone in the company’s progress at Port Gregory.
“Securing a commitment to explore a material level of funding at this stage in the project development cycle is a clear demonstration of the exceptional value of Port Gregory,” he said.
“We will now continue to rapidly identify and secure full funding options to establish a pathway to first production in 2026.”
Due diligence
Atradius is expected to commence due diligence to assess insuring export financing for the project under its commitment to promote Dutch exports and guarantee products involving the export of capital goods.
Additional due diligence will be conducted as Port Gregory pre-feasibility and bankable feasibility studies progress.
Heavy Minerals will assist Atradius with a view of securing ECA Cover funding to assist in building a mine at Port Gregory.
The company will liaise with additional project funding institutions to ensure the project is fully funded.
Export cover
ECA Cover from Atradius is often used to assist Dutch exporters to secure export transactions and increase the capacity to raise finance from banks.
Interest rates charged by lenders on debt guarantee by ECA Cover are typically lower than commercial rates, as repayment of the debt is insured over longer terms.
ECA suitability
The Dutch ECA scheme was deemed suitable for Port Gregory based on the potential provision of mining hardware, the process plant and supporting infrastructure from Dutch-owned Royal IHC.
Royal IHC has supported Heavy Minerals with technical, engineering and project study work for the project since the company listed on the Australian Stock Exchange in September 2021.
