While 100% debt funding would be preferable, I struggle to find any comparable companies in the gold/critical minerals space who have achieved that outcome. Since our DFS last year, I was only able to find 2 gold companies who have received funding packages; MEK and DEG.
MEK: $73m package: $35m of which was via equity: https://www.listcorp.com/asx/mek/meeka-metals-limited/news/complete-funding-package-for-the-murchison-gold-project-3079344.html
DEG: $600m raising, $344m of which was equity: https://degreymining.com.au/wp-content/uploads/2024/05/20240508-DEG-Announcement-Equity-Raising.pdf
As you will all know by now, NST finalised the purchase of DEG just last week.
EVN did receive a $550m debt only package via a US investor a few years back but they have been producing for years and are the 2nd biggest pure gold producer on the ASX. https://evolutionmining.com.au/wp-content/uploads/2021/08/2247952_-Evolution-Successfully-Prices-US550-Million-Debt-Via-US-Private-Placement.pdf
The reality is that there will likely be an equity component, although I hope I am incorrect. MEK is the only real comparison here as they are targeting first production by FY end. The odds are definitely not in our favour, and I would caution anyone against getting expectations up regarding 100% debt, given that history says otherwise.
Hi@Montysaves, always a fan of your insights. Would be open to connecting if that is something you'd be up for? Shoot me an email at [email protected] if you are interested.
Cheers PS
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