Galena Mining receives strong endorsement for Abra Base Metals Project with US$110 million Taurus debt facilities

Galena Mining Ltd (ASX:G1A) has mandated Taurus Funds Management Pty Ltd to provide US$110 million in project financing debt facilities to take the Abra Base Metals Project in Western Australia closer to production.

This has led to Toho Zinc Co Ltd (TYO:5707) allowing the release of their final A$60 million equity investment and both represent a strong endorsement of the world-class project.*Debt facilities*

Abra Mining Pty Limited (AMPL), the joint-venture company for the Abra project, mandated Taurus Funds Management Pty Ltd to provide the debt facilities through Taurus Mining Finance Fund No2 LP.

This is made up of:

· A US$100 million term loan (project finance facility); and
· A US$10 million cost overrun loan (cost overrun facility).

Approval of the Taurus debt facilities by Galena's co-shareholder in AMPL, Toho Zinc, allows the release of their final investment tranche into AMPL once the facilities are in place and drawdown conditions are met.*"Fulsome funding package"*

Galena managing director Alex Molyneux said: "The US$110 million of debt funding, together with the final A$60 million investment to be received from Toho on implementation of the facilities, provides an efficient and fulsome funding package to bring the outstanding Abra base and precious metals project to fruition in a way that provides robust shareholder returns."

Shares in Galena, which has a market cap of approximately $115.1 million, have been as much as 16% higher to 29 cents intra-day.