Thompson Creek Metals Company Inc. has secured $290 million in credit to be used to help finance its major upgrade of the existing Endako molybdenum mine and the planned Mount Milligan gold and copper project.
Both mining projects are located in north-central B.C.
The $900-million Mount Milligan mine site is located 155 kilometres northwest of Prince George; while the Endako mine, which is undergoing a $500-million upgrade and expansion, is located 175 kilometres west of the city.
The company can increase the credit facility, which is due at the end of 2014, to $300 million at any time.
"We are very pleased with the clear showing of support and confidence from the banking community," said Kevin Loughrey, the company's chairman and CEO. "This credit facility provides Thompson Creek with the financial flexibility to continue executing its business and financial strategies."
The $290 million will also be used for general corporate purposes.
The upgrade to the Endako mine is expected to help secure the approximately 260 jobs at the mine. The modernization is also expected to have spinoff benefits for Prince George, considered a supply and service centre for mines in the region.
The modernization project includes construction of a new mill to replace a 45-year old plant. The upgrade will also increase the mill capacity to 50,000 tonnes per day from 28,000 tonnes per day.
Denver, Colo.-based Thompson Creek recently purchased Terrane Metals, which owned the Mount Milligan project, in a $700-million transaction.
The Mount Milligan mine promises some of the first new heavy-industry jobs in the Prince George region in more than a decade. Such jobs, which are normally higher paying than those in the service sector, are considered important for the economy because they bring wealth-creating export dollars to the region.
As part of its purchase of Mount Milligan, Thompson Creek also secured financing of $311.5 million with Royal Gold Inc., which earned the right to purchase 25 per cent of the future mine's gold production.
Some preliminary development - including road upgrades - has started at the Mount Milligan gold and copper project. The main push on construction is planned for next spring.
The project is the closest new mine development to the city.
The mine, with a forecast life of 15 years, is expected to create 400 jobs. Between 200 to 600 workers will also be needed during the mine's two-year construction period.
