Galena Mining completes first US$30 million drawdown under Abra debt facilities

Galena Mining Ltd (ASX:G1A) (FRA:GM6) continues on the path to production from the Abra Base Metals Project with Abra Mining Pty Ltd (AMPL), the joint venture company for the project, completing its first US$30 million drawdown of the Taurus Debt Facilities. Following this initial US$30 million received, US$80 million of funding remains under the Taurus Debt Facilities. Remaining proceeds include: US$70 million for project finance facility; and US$10 million for cost overrun facility. The Abra Base Metals Project, a globally significant lead-silver project in the Gascoyne region of Western Australia, is 70% owned by Galena. “Important milestone” G1A managing director Tony James said: “The receipt of the first US$30 million drawdown from Taurus is an important milestone on our pathway to first production of high-value, high-grade lead-silver concentrate from Abra in the first quarter of 2023. “We appreciate the great relationship we have with Taurus as a funding partner.” The Taurus Debt Facilities are secured against Abra Project assets and over the shares that each of Galena and partner Toho own in AMPL. Additional drawdowns remain subject to satisfaction of customary conditions precedent. Abra’s production schedule Abra is poised to join the ranks of high-margin Australian base metals producers with first production of its high-value, high-grade lead-silver concentrate scheduled for the first quarter of 2023. The Abra project was 17% complete as of May 31, 2021, based on A$27.4 million of project works, which were pulled forward and executed ahead of the final investment decision (FID). The completed project works include: Construction and commissioning of a 280-unit mine site village; Mining of the box-cut; Box-cut ground support works; Installation of production water infrastructure (bores, pumps and water reticulation); Installation of site communications; and Various site clearing, roadworks and civil works. As a result, Abra is largely prepared for deployment of key contractors for the construction of the plant and ancillary infrastructure, and deployment of the underground mining contractor.