De Grey Mining has obtained a loan of A$150m ($101.92m) from the Northern Australia Infrastructure Facility (NAIF) for the development of its Hemi Gold Project in Western Australia’s Pilbara region.

The funding is a significant step towards the project’s anticipated $1bn senior debt facility and $130 million cost overrun facility (together referred to as debt facilities).

This capital injection, along with De Grey’s existing cash reserves, is expected to fully finance Hemi Gold.

The agreement with NAIF includes a commitment from De Grey Mining to maintain a close relationship with the Kariyarra People, the Native Title holders of the land where the Hemi project is located.

De Grey Mining has pledged to foster positive outcomes for the traditional owners, ensuring that the project’s benefits extend to the local community.

The NAIF loan will join contributions from a consortium of domestic and international commercial banks, which have already issued credit-approved terms that align with the targeted funding levels for the debt facilities.

De Grey Mining is working towards finalising the documentation for the debt facilities within the current half-year, ending December 2024.

De Grey Mining managing director Glenn Jardine said: “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. 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.

“Hemi is located on Kariyarra lands and the development of the project will provide the Kariyarra People with important economic, employment and vocational opportunities. 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.

“With the support of NAIF, our commercial lending syndicate and a large existing cash balance, we expect to be in a position to complete the project financing for Hemi in the current December half 2024.”

Earlier this year, De Grey Mining signed an exclusive option deal with Kalamazoo Resources to potentially acquire the Ashburton Gold Project in Pilbara, positioned 290km south of Hemi Gold.