"The company anticipates that it will be in a position to affect an initial drawdown of US$3 million once documentation has been completed. This will enable the company to continue the current development works," Pacific chief executive Geoff Hiller said.

"The company believes that the project holds relatively low technical risk, and that capital payback will be achieved in under 12 months," he added.

The loan facility has a three-year repayment term beginning after the first shipment and with no scheduled repayments due during the wet season months, the company said.

It has a competitive margin above the US secured overnight financing rate, it added.

A February feasibility study on Pacific's 80%-owned Kolosori project examined two options for what could be a relatively short but profitable direct shipping ore operation: a base case option, essentially based on its maiden reserves of 3.8 million tonnes grading 1.7%, and an expanded option based on reserves plus about one-third of its 2Mt inferred resources.

The base case uses a mining inventory of 3.8Mt grading 1.57% and delivers a post-tax net present value of $91 million and an internal rate of return of 156%.

The expanded option uses 6.1Mt grading 1.51% for an NPV of $83 million and an IRR of 170%.

Pacific acquired Kolosori in 2020.

Pacific was trading at A8.1c, up 11%.

The remaining 20% of Kolosori is held by traditional landowners.