Fairstar Resources (ASX: FAS) has secured conditional approval for a A$300 million debt facility from international lenders to fast track its Steeple Hill Iron Project in Western Australia’s Yilgarn region.
Fairstar plans to use the funds to begin construction and commission the plant at the Steeple Hill Iron Project, fund infrastructure, provide further working capital and retire debt.
The company has been rigorously evaluating a number of potential local and international investor funding proposals in the past 12 months, making sure it secures a funding model that does not result in further dilution.
The facility will be repayable, by the delivery of iron ore, over 10 years from first drawdown. Security is a mortgage over the Steeple Hill Iron Project mining tenements only.
