THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) is cashed up following the receipt of funds regarding the Offtake and Loan Facility Agreement it has with NYSE-listed Cabot Corporation.
Pioneer Resources said the funds would be applied to the Stage 1 activities underway at the Sinclair caesium mine, located within the company’s 100 per cent-held Pioneer Dome project, south of Kalgoorlie in Western Australia.
The Sinclair mine is to be Australia’s first ever commercial pollucite (a caesium mineral) producer.
Under the terms of the agreement, Cabot has provided Pioneer a US$4.8 million Loan Facility for the Sinclair caesium mine that is to be repaid by the delivery of caesium ore.
“Further to our project update of the 29 August 2018, we are pleased to advise that we have now received US$4.8 million, which equates to approximately AUD$6.5 million, provided for under our Offtake and Loan Facility Agreement with Cabot,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.
“The funding is expected to fully cover mining operations at the Stage 1 Sinclair Mine, which will advance immediately.”