HPX has also secured political risk insurance from Multilateral Investment Guarantee Agency for the project
High Power Exploration (HPX) has raised $200m financing to fast-track the development of its Nimba iron ore project in the Republic of Guinea.
The company is targeting a production of an initial 15 million tonnes per annum of high-grade direct shipping iron ore from the Nimba project. It plans to ramp up the production to 30 million tonnes per annum.
HPX has also secured political risk insurance (PRI) from Multilateral Investment Guarantee Agency, a member of the World Bank Group, for the project.
The company is expected to sign the PRI policies in the coming days.
HPX stated: “The policies will cover political risks which arise in either the Republic of Guinea or the Republic of Liberia in relation to 90% of the equity and principal on the shareholder loans HPX has already invested, and will continue to invest over the development phase, into the Guinean and Liberian subsidiaries involved in the development of the Nimba project.”
The Nimba iron ore deposit was acquired by the company in September 2019.
The US-domiciled mineral exploration and development company also owns a portfolio of prospective, high-potential minerals projects, including porphyry copper-gold projects in the western US, apart from the Nimba project.
In October last year, Canada-based Brixton Metals reached an $44.5m earn-in and joint venture agreement with HPX for its wholly owned Hog Heaven Project.
The Hog Heaven project is an advanced stage silver-gold-copper-lead-zinc deposit that is located in Flathead County, 88.5km south-southwest of the town of Kalispell, in the northwest portion of state of Montana, US.
HPX signed the agreement to gain the right to earn 51% stake in the project by paying a total of $4.5m cash and spending $15m on exploration.