Polymetals unlocks extra funding for Endeavor Mine expansion
Polymetals Resources has doubled its available working capital facility with Ocean Partners to US$20 million after using cash to replace its rehabilitation bond and reporting lower-than-planned September quarter revenue. The additional funding will support development and exploration at the Endeavor Mine, but adds to the company’s near-term financing obligations.
- Additional US$10 million Ocean Partners facility
- Total available working capital rises to US$20 million
- 5% annual interest on drawn funds
- Funding targets Upper Main Lode, Supergene Zone and Deep Zinc Lode development
- September quarter revenue was below plan after a cash-funded rehabilitation bond replacement
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Ocean Partners Doubles Available Working Capital
Polymetals Resources Ltd (ASX:POL) has secured an additional US$10 million working capital facility from trading partner Ocean Partners UK, taking the total available facility with the lender to US$20 million. The extension gives Polymetals more financial room at its Endeavor silver-zinc-lead mine in New South Wales, where cash demands have risen after a rehabilitation bond was replaced with cash reserves.
The company said it moved to bolster working capital after replacing the A$27.956 million Endeavor Mine Rehabilitation Bond in July and recording lower-than-planned revenue in the September quarter. The announcement does not disclose how much of the facility has been drawn, or its maturity, security and repayment terms. Interest is set at 5% per annum on drawn amounts.
New Funding Targets Endeavor Expansion
Polymetals said the extended funds will support development of the Upper Main Lode, the potential Supergene Zone and the Deep Zinc Lode, alongside near-mine and regional exploration. The Upper Main Lode has been a central part of the mine’s expansion story, following a 1.3 Mt Upper Main Lode resource addition reported in September.
The extra liquidity arrives as Polymetals attempts to build on Endeavor’s transition into commercial production. That milestone generated A$100.0 million in revenue during FY2026, but the company also reported a A$47.0 million loss and A$21.8 million operating cash outflow, with its auditor flagging material uncertainty around its ability to continue as a going concern in its annual results.
December Quarter and Mine Reserve Update Ahead
Executive Chairman David Sproule said December quarter operations remained on schedule and that an updated Mine Reserve statement was expected during the current quarter. The company did not provide revised production or financial guidance with the facility announcement.
For shareholders, the facility is both support and signal: Ocean Partners is providing additional access to capital, but Polymetals is paying for that flexibility and has not disclosed the amount already drawn. The next test will be whether December quarter operations and the updated reserve statement provide enough evidence that mine development can translate into stronger cash generation before further funding is needed.
Bottom Line?
The extra US$10 million improves Endeavor’s liquidity, but the undisclosed drawdown and repayment terms leave cash generation as the key near-term test.
Questions in the middle?
- How much of the expanded US$20 million facility will Polymetals draw, and on what terms?
- Can December quarter operations improve revenue after the weaker-than-planned September quarter?
- What will the updated Mine Reserve statement show for the Upper Main Lode and other development areas?
Sources
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Polymetals extends Working Capital Facility (opens in a new tab)Verified source. Polymetals Resources Ltd · 22 Oct 2026
