Ahead of rebranding itself as Broken Hill Mines (ASX: BHM), Coolabah Metals (ASX: CBH) has signed a binding conditional term sheet with Hartree Metals for a financing facility of approximately $39.5 million (US$25m) and a significant offtake of lead concentrate.
The company will use the new funding on growth activities at its recently acquired Rasp and Pinnacles mines.
The rebranding comes after Coolabah completed a strategic consolidation of two of the three mining companies that control all current silver, lead and zinc operations at Broken Hill.
The Hartree offtake financing facility will run over four years including a 12-month principal repayment grace period, followed by a straight-line repayment structure.
It contains secured overnight financing at the present rate plus 3.5%, with flexible drawdown across three tranches over the first 12 months.
The facility replaces the previously proposed transaction with Trafigura Group for approximately $15.8m (US$10m) in financing and the purchase of 200,000 tonnes of lead concentrate from the Rasp and Pinnacles operations.
Hartree – a US-based global resources financier – will now purchase the same quantity of lead concentrate at competitive market terms and industry-standard payability for lead and by-product metals including silver.
Coolabah completed the acquisition of the Rasp mine and associated assets from CBH Resources, along with the purchase of 100% of the issued capital in Broken Hill Mines, in October 2024.
It also secured an option over a 70% profit-sharing interest in the development and operation of the Pinnacles mine, located 15 kilometres from Rasp.
Rasp has an existing mineral resource estimate (MRE) of 10.1 million tonnes at 9.4% zinc equivalent, while Pinnacles has an MRE of 6.0Mt at 10.9% zinc equivalent.
Coolabah expects to finalise the deal, which remains subject to the customary approval process, by July 2025.
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