Australia-based resources company BCI Minerals has received a commitment for the A$150m project debt financing for the Mardie Salt Project, except for its sulphate of potash (SOP) plant.

The company has received credit approvals for debt financing, which is fully underpinned by salt revenues from two undisclosed commercial banks.

It will procure debt funding for the SOP Plant in 2024, once the relevant additional design and cost development for the plans is completed.

The potential commercial bank funding is expected to include an A$180m, seven-year construction facility, an A$81m cost overrun facility, and an A$70m bank guarantee facility.

The financing approvals from two large commercial banks, for at least A$150m of funding, will partly address these requirements, said the company.

BCI managing director David Boshoff said: “Project finance is gaining momentum, with ongoing support from key lenders indicating strong confidence in BCI’s Mardie Project.

“The participation of two leading commercial banks, alongside NAIF and EFA, brings us closer to completing the project finance debt package and acquiring the funding needed to complete the project.”

The announcement follows BCI Minerals’ recent debt funding approvals from the Northern Australia Infrastructure Fund (NAIF) and Export Finance Australia (EFA).

The Australian Federal Government approved A$650m in funding for the Mardie salt project, including an A$490m, 15-year facility from NAIF and an A$160m, 11-year facility from EFA.

In addition to the credit approvals from commercial banks, NAIF and EFA, BCI has received a non-binding letter of interest from Export Development Canada (EDC) for project financing.

The EDC financing is subject to the completion of its due diligence process and the satisfaction of typical project finance conditions.

BCI is targeting completion of formal debt documentation in H1 FY24 and the first drawdown of debt in H2 FY24, subject to satisfying all relevant conditions precedent.

BCI and its debt advisor, KPMG Corporate Finance, are advancing discussions with several financiers to procure around A$181m remaining project finance for the Mardie Salt Project.