Polymetals Resources Ltd (ASX:POL) has finalised all the paperwork for a US$20 million (around A$30 million) pre-payment loan facility with Ocean Partners, meaning it can re-start production at the Endeavor silver, zinc and lead mine.
Reviving a productive base metal site
This funding enables Polymetals to revive one of Australia’s previously productive base metal sites.
Having placed the Endeavor Mine on care and maintenance in 2019, the company is now positioned to capitalise on high-grade remaining resources amid growing demand for zinc and silver in renewable energy and industrial sectors.
The redevelopment includes planned infrastructure upgrades to boost operational efficiency, sustainability, and output.
The loan facility provides essential capital to support the company's redevelopment objectives, with funds now accessible to cover anticipated expenditures and drive the asset back into production.
Cashflow due in early 2025
Polymetals aims to achieve initial cashflows from Endeavor in the first half of 2025.
Under the terms of the agreement, Polymetals will grant Ocean Partners or its nominee 2,500,000 options, priced at A$1.00 per share and exercisable over a two-year period.
This issuance not only enhances funding flexibility but also reinforces the partnership between the two companies.
Polymetals executive chair Dave Sproule said: “The company continues to meet its stated objectives on time, with its senior management in place focused on the re-development work required to bring Endeavor back online.
“We are very much looking forward to generating first concentrates and cash flow during H1 2025.”
The Endeavor mine is set to restart in 2025.