All good for SUP on the debt front

IN CONTRAST to the somewhat limited interest being shown by equity market investors, Superior Lake Resources has received “multiple non-binding indicative” financing proposals for the company’s namesake zinc project in Ontario.
All good for SUP on the debt front All good for SUP on the debt front All good for SUP on the debt front All good for SUP on the debt front All good for SUP on the debt front

Financiers evidently like the look of Superior Lake, Canada

According to Superior - which has the ASX ticker SUP - the proposals range from US$50-70 million.

A bankable feasibility study is said to be imminent, with a "restart" study late last year estimating start-up capital of $75 million.

That same study estimated the project had a post-tax net present value of A$158.5 million and internal rate of return of 48%, though inputs used featured zinc and copper prices well above current levels (mitigated to an extent by us of a 0.75 exchange rate).

Also of interest in the upcoming feasibility study will be the TC/RC charges used for Superior's concentrates, given recent decade high costs levelled by smelters at zinc producers.

Superior raised $3.8 million late in June when it issued new shares priced at 1.75c each.

Shares in Superior were up 13% to 1.7c, capitalising the company at $18 million.

The stock has steadily declined from levels around 5c last October.