Mod upgrades plant, appoints Sedgman, Azure

Business News, Tayler Neale, Friday, 10 August 2018, © Copyright 2018 Business News Pty Ltd.

MOD Resources has increased the capacity of its planned processing plant at the T3 copper project in Botswana, while also appointing CIMIC Group’s Sedgman as lead engineer for the feasibility study, and Azure Capital and London-based Terrafranca Advisory as joint debt advisors for the project.

Mod said following the upgraded mineral resource announced in July, the company has increased the planned throughput for the processing plant to 3 million tonnes per annum, up from 2.5mtpa.

The company released a pre-feasibility study for the project in January, which detailed a capital cost of $US155 million.

Mod said today it has appointed Sedgman as the process and infrastructure engineer for the feasibility study, which is set to be completed by March next year.

“Sedgman will also compile the final FS document incorporating inputs from the various consultants who are contributing to the study,” Mod said in a statement to the ASX.

The company has also appointed Perth-based Azure and Terrafranca as debt advisors to secure funding for the T3 project.

Azure has advised on a number of deals recently, including Orion Resource Partners’ $US105 million of funding for Heron Resources’ Woodlawn zinc-copper project and Sheffield Resources, which struck a funding agreement last year with Taurus Funds Management to underwrite a $US200 million funding package for its Sheffield mineral sands project.

“The appointment of Azure (based in Perth) and Terrafranca (based in London) as joint debt advisers provides global coverage in securing debt finance,” Mod said.

“The debt advisers have an exceptional record of successfully securing debt funding for numerous mining companies over an extended period.”

Shares in Mod were up 1.01 per cent at 50 cents each at 1pm AEDT.

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