Alara Increases Loan Facility to $96.2M for Al Wash-hi Majaza Project

Financing Boost for Al Wash-hi Majaza Project

Alara Resources Limited (ASX – AUQ) has announced a significant financial milestone for its Oman-based Al Wash-hi Majaza Copper Gold Project. The company’s joint venture, Al Hadeetha Resources LLC (AHRL), has secured an additional loan facility of approximately USD 36.4 million from its existing lender, Sohar International Bank. This new funding increases the total loan facility to around USD 96.2 million, providing a substantial capital injection to support the project’s next phase of development.

Purpose and Allocation of Funds

The additional financing is earmarked primarily to clear outstanding capital expenditure payables and to fund new capital projects, notably the installation of a permanent tailings filter press; a critical component for sustainable mining operations. Furthermore, the funds will support sustaining capital expenditures necessary to maintain production levels, as well as general working capital requirements such as utility payments and procurement of consumables. This financial flexibility is expected to underpin uninterrupted operations and facilitate ongoing exploration efforts.

Corporate Structure Transformation

As part of the loan agreement, AHRL is required to transition from a Limited Liability Company (LLC) to a Closed Joint Stock Company (SAOC) by June 2027. This change introduces a more rigorous governance framework, enhancing transparency and credibility. The SAOC structure is also designed to position the joint venture for broader investor engagement and opens the door for a potential future listing on the Muscat Stock Exchange. This strategic move signals a maturation of the project’s corporate governance aligned with its growth ambitions.

Management Perspective and Market Implications

Alara’s Managing Director, Atmavireshwar Sthapak, highlighted the importance of this financing milestone, noting that the continued support from Sohar International Bank reflects strong confidence in the project’s fundamentals. The additional funds will enable the joint venture to meet key capital commitments and accelerate operational delivery. With production and exploration activities advancing, the project is poised to move closer to steady-state revenue generation, reinforcing Alara’s mission to become a mid-tier metals producer.

Looking Ahead

This financing arrangement not only strengthens the project’s financial footing but also signals a strategic evolution in its corporate governance and market positioning. As Alara and its partners in Oman continue to ramp up production and exploration, the industry will be watching closely to see how these developments translate into operational performance and shareholder value.