Vancouver's Quadra Mining Ltd. (TSX:QUA) has closed a $37.5 million project loan facility to develop its recently acquired Franke copper project in northern Chile.
The company has drawn down the $30 million term loan portion of the financing and plans to tap the $7.5 million working capital loan soon.
Quadra mining acquired the Franke project earlier this year when it bought Centenario Copper Corp. for 0.28 a Quadra share, which represented a 12.9% premium over the 20-day volume-weighted average trading price of Centenario.
As part of the loan agreement, Quadra entered into zero-cost-dollar and option contracts for 43 million pounds of copper. The contracts will ensure that the company will receive a minimum floor price of $1.80 per pound and a maximum price of $2.16 per pound for 28 million pounds of copper between the fourth quarter of 2009 and the second quarter of 2010.
The copper option contracts ensure that the company will receive a minimum floor price of $1.80 per pound for 15 million pounds of copper during 2010's third and fourth quarters.
Quadra's share price range during the past week: between $7.17 and $8.08; 52-week high: $25.29; 52-week low: $1.97.