Pacifico Minerals’ Sorby Hills Progressed to Due Diligence After NAIF Completes its Strategic Assessment

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Pacifico Minerals’ Sorby Hills Progressed to Due Diligence After NAIF Completes its Strategic Assessment

 Pacifico Minerals’ Sorby Hills Progressed to Due Diligence After NAIF Completes its Strategic Assessment

Summary

  • The strategic assessment of the Sorby Hills Project has been completed by the Federal Government’s Northern Australia Infrastructure Facility (NAIF).
  • NAIF has confirmed Sorby Hills’ progress to a detailed due diligence phase of the debt funding assessment process.
  • NAIF has A$5 billion of debt finance which could be lent on concessional terms for Northern Australia’s infrastructure development directed towards public benefit.
  • Sorby Hills Project encapsulates community-centric perks, involving a peak of 163 construction personnel and an average of 186 operations personnel.
  • Pacifico is currently progressing with its Definitive Feasibility Study on the Sorby Hills Project.

Australian explorer, Pacifico Minerals Limited (ASX: PMY), in a significant update on 14 September 2020, announced that Federal Government’s Northern Australia Infrastructure Facility (NAIF) has completed its strategic assessment of the Sorby Hills Project. NAIF has informed that the Project has advanced to the detailed Due Diligence Stage of the debt funding assessment process.

Post the significant update, PMY zoomed up by 5%, closing the day’s trade at $0.021 on 14 September 2020.

ALSO READ: Pacifico Minerals’ Drilling Program Underway at Sorby Hills Project; Eyeing Advancement Toward a Definitive Feasibility Study

NAIF’s concessional financial support to infrastructure development is garnered towards generating public benefit for Northern Australia.

Source: PMY ASX Update

Sorby Hills Placed Well with its Community-centric Focus

Sorby Hills Joint Venture is a proposed significant mining project stationed around 50km northeast of Kununurra and 150km from the Wyndham port, in the Kimberley Region of Western Australia. The project offers substantial job opportunity, especially to the locals of the Kimberley Region. The community-centric approach of the project appears to bolster its position to measure up to NAIF’s standards.

The Federal Government organisation, NAIF has an aggregate of A$5 billion in debt finance available to be lent on concessional terms to support infrastructure development that generates public benefit for northern Australia. NAIF also seeks to encourage and complement private sector investment for advancing objectives of public interest and enhance employment opportunities in the region.

The project encapsulating similar community-related perks will involve a peak of 163 construction personnel and an average of 186 operations personnel. Significantly, many of these jobs would be sourced from the Kimberley Region.

ALSO READ: Pacifico Minerals’ Remarkable June Quarter Report Full of Robust Developments

Meanwhile, the Sorby Hills project would aid in the construction and maintenance of a pipeline of jobs and associated support industry in the region. The project’s support to the local economy is extremely crucial at the critical juncture when the region’s premier mining project, Rio Tinto’s (ASX: RIO) Argyle Diamond Mine, is preparing for the closure.

Source: PMY ASX update

The Company suggested that it would continue to support NAIF with its required due diligence investigations concerning participation in any potential debt facilities for funding the development of Sorby Hills development. Pacifico Minerals indicated that at the current stage, no decision to offer finance had been made by NAIF. Also, there is not any certainty that Pacifico Minerals and NAIF will reach an agreement.

Robust Prefeasibility Results Bolstering Sorby Hills Potential

Pacifico Minerals recently released a Pre-feasibility Study (PFS) which simultaneously confirms Sorby Hills' technical as well as economic robustness. The study indicated robust economics of the project delivering a Pre-Tax NPV8 of A$303M and Pre-Tax IRR of 46%. The strong cash flows are expected to support a high level of debt for the upfront capital requirement.

Detailed Discussion at: Pacifico Minerals Sitting on a Sweet Spot with Outstanding Economic Outcomes from Sorby Hills Pre-Feasibility Study

The Company is currently progressing with its Definitive Feasibility Study on the Sorby Hills Project.

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