Highlander Secures $330M Debt for Corani Silver Mine
Highlander Silver has arranged a $330M loan to fund its Peruvian project, retaining full offtake rights and targeting 2027 construction.
Key points
- Highlander Silver arranged a $330 million senior secured loan for its Corani silver project in Peru.
- The financing includes a $100 million cost-overrun provision, covering approximately 72 percent of estimated construction costs.
- Highlander holds 229 million ounces of silver reserves and targets first production by the end of 2029.
Highlander Silver secured a $330 million senior debt facility for its Corani project. The company hired Natixis to lead the financing structure for the Peruvian asset.
The deal includes a $100 million cost-overrun provision to support construction. Highlander expects to close the transaction in the first quarter of 2027.
Financing structure avoids equity dilution
Analysts estimate total construction costs between $450 million and $500 million. The proposed loan covers roughly 72 percent of these initial capital expenditures.
BMO Capital Markets notes that operating cash flow will fund the remaining costs. This approach eliminates the need for additional equity financing during the build phase.
Project reserves and production targets
Corani holds 229 million ounces of silver in proven and probable reserves. The mine is designed to produce an average of 9.6 million ounces annually.
Construction is scheduled to begin in the first half of 2027. First production is targeted for the end of 2029 under current plans.
Market reaction and balance sheet
Highlander shares fell 7 percent to C$7.62 on Wednesday morning. The drop coincided with a 3 percent decline in global silver prices.
The company held $100 million in cash and no debt at June 30. The Northern Miner reports that Highlander retains 100 percent of the project's offtake rights.
