Canada’s Woulfe Mining Corp expects to sign a W168bn (US$150mn) debt financing agreement with South Korea’s Shinhan Bank in the next six weeks for its mine project in Sangdong.

Woulfe announced the signing of a memorandum of understanding with the bank last July, for a 12-year, W110bn senior debt facility with a W55bn tranche at a fixed rate of 5.8% a year and a W55bn tranche at a three-month “AAA” bank bond rate (3.4% a year) followed by 2.3% a year. The deal also includes a five-year W10bn working capital credit facility.

Woulfe explains that now that Dutch mining equipment firm International Metal Working Companies (IMC) is satisfied with the due diligence accomplished on the project, it is ready to finalise the financing agreement with Shinhan.

IMC is providing C$35mn in equity for the Sangdong tungsten mine and process plant. Woulfe is also starting a refinery joint venture company, which will be funded with a US$35mn investment by IMC as well as debt and equity by Woulfe.

Brian Wesson, the company’s CEO and president, says: “Woulfe is now focused on moving the project development forward and finalising the financing as quick as possible.”