New Century Resources has successfully completed a share placement to raise about $40 million towards the restart of operations at the Century zinc mine in the lower Gulf.
The company says its offer was significantly oversubscribed, with strong support from major institutional investors.
“This successful placement puts New Century in a very strong financial position and allows us to progress the restart and ramp-up of the Century Zinc Mine and deliver on our strategy to become a globally significant zinc producer in 2018,”
managing director Patrick Walta said.
The company says it is on track to begin producing in the third quarter of this year, at an initial processing capacity of 8Mtpa.
A restart feasibility study into the planned tailings reprocessing placed the initial start-up cost at $62.5 million.
Once in production, the company plans to invest a further $63 million over a 15-month period to ramp up to 15Mtpa.
The company is undertaking an expansion prefeasibility study, looking at the potential to mine other mineral resources on the lease in addition to the tailings reprocessing activities.