In an update today the company said it had entered a binding heads of agreement for the debt facilities, with further details set to be released next week.

Details on a new capital raising are also expected in the coming days.

The debt will fund the phase two expansion at Uley, which involves open pit mining at Uley pit two and construction of a new, larger processing plant.

Mining at the new pit is expected to start in the fourth quarter of the calendar year.

The update comes on the back of the company’s quarterly report yesterday, which outlined the continued ramp at Uley.

Valence made its first shipment last month, and signed new sales contracts earlier in the quarter to cover its first year of production.

The company finished the quarter with $A3 million cash.

Valence shares remained in a trading halt at 36c today.