Avanti Mining announced it entered into a debt financing mandate letter with a syndicate of six lenders pursuant to which the lenders are proposing to provide secured debt finance facilities for $612 million to develop the Kitsault molybdenum mine.

The lenders consists of BNP Paribas, Caterpillar Financial Services Corporation, Export Development Canada, Korea Development Bank, Mizuho Bank Ltd. and UniCredit Bank AG.

The facility set out in the term sheet is comprised of $500 million senior debt for a term of 10.5 years, $42 million in equipment finance for a term of 5 years and $70 million in the form of standby cost over-run facilities for a term of 8 years.

Avanti’s financial advisor in relation to the debt financing is Northcott Capital.