De Grey Mining has successfully obtained a $150 million loan from the Federal Government’s Northern Australia Infrastructure Facility (NAIF) to advance the development of its Hemi gold project, located in the Pilbara region of Western Australia.
This NAIF loan represents a crucial component of a broader $1 billion senior debt facility. De Grey Mining has already secured credit-approved term sheets from commercial banks to cover the remaining amount, ensuring comprehensive financial backing for the project.
Additionally, the funding package includes a $130 million cost overrun facility, keeping the project on schedule for completion in the second half of 2024.
“We are grateful for the strong support from NAIF in the development of Hemi and would like to acknowledge the vital roles played by the Minister for Resources and Northern Australia, Hon. Madeleine King MP, and the Special Envoy for Northern Australia, Luke Gosling OAM,” said De Grey Managing Director Glenn Jardine.
“Hemi is a significant project for the Pilbara region, contributing to commodity diversification and the development of new mineral processing skills in an area already renowned as a mining hub in Western Australia.”
The Hemi processing facility is set to become a strategic piece of regional infrastructure, with the capability to process gold ores from the Pilbara and potentially other parts of Northern Australia.
As part of the agreement with NAIF, De Grey Mining will collaborate closely with the Kariyarra People, the Native Title holders of the land, to foster economic, employment, and vocational opportunities. The company also plans to establish a ranger program within Kariyarra Country, focusing on cultural heritage preservation and land management initiatives.
The Hemi gold project is expected to bring advanced mineral processing skills to the Pilbara, further enhancing the region’s robust mining capabilities.
With substantial cash reserves and secured debt facilities, De Grey Mining is well-positioned to move towards a final investment decision on Hemi’s development, pending the completion of final environmental approvals.
