Ferroalloy producer Hazelwood Resources has secured a US$6mn revolving trade facility from LH Asian trade finance fund.
The facility will be used to purchase inventory items for Hazelwood’s Asia Tungsten Products Company (ATC) Ferrotungsten project in Vietnam.
Hazelwood acquired a 60% interest in ATC in May 2010, which is constructing a ferrotungsten refinery near Vihn Bao, Vietnam.
Ferrotungsten is used in steels and alloys where hardness and heat resistance is required.
Stage one of the plant has a nameplate capacity of approximately 4,000 tonnes of ferrotungsten alloy per annum.
A second stage, if completed, would have sufficient capacity to supply around 25% of the world’s ferrotungsten.
Additionally, Singapore-based private equity investment arm Bashan Resources will provide a further US$6mn, subject to the satisfactory servicing of the initial trade finance facility.
Terms of the deal will be announced following the finalisation of the documentation, Hazelwood says.
The LH Asian fund is a hedge fund investing in structured trade and commodity finance transactions in the Asia Pacific region.
It is managed by Eurofin Investments − a subsidiary of Singapore-based advisory and fund management boutique EFA Group.