How Broken Hill Mines’ US$25m Deal with Hartree Metals Could Transform Its Mines
Broken Hill Mines has locked in a US$25 million senior secured financing facility alongside a major silver-lead concentrate offtake agreement with Hartree Metals, underpinning growth at its Rasp and Pinnacles mines.
- US$25 million senior secured offtake financing facility finalized
- Four-year term with 12-month repayment grace period
- Hartree Metals to purchase 200,000 tonnes of silver-lead concentrate
- Funds earmarked for growth and development at Rasp and Pinnacles mines
- BHM holds A$36 million cash including initial US$10 million drawdown
Strategic Financing to Fuel Growth
Broken Hill Mines Limited (ASX – BHM) has taken a significant step forward in its development strategy by completing a US$25 million senior secured offtake financing facility with global commodities firm Hartree Metals LLC. This agreement not only provides crucial capital but also secures a substantial offtake commitment for silver-lead concentrates from BHM’s key mining assets.
The financing package, structured over four years, includes a 12-month grace period on principal and interest repayments, offering BHM breathing room to focus on operational expansion before repayments commence. The interest rate is set at the Secured Overnight Financing Rate plus 3.5%, reflecting competitive market terms for such facilities.
Offtake Agreement Enhances Market Security
Complementing the financing, Hartree Metals has agreed to purchase 200,000 tonnes of silver-rich lead concentrate from BHM’s Rasp and Pinnacles mines. This offtake arrangement provides BHM with a reliable sales channel on highly competitive terms, including standard payability for associated metals such as silver, gold, and copper. Such agreements are critical in the mining sector, reducing market risk and ensuring steady revenue streams.
BHM’s cash position remains robust, closing the September 2025 quarter with A$36 million, which includes the initial US$10 million tranche drawn down from the facility. These funds are earmarked to accelerate growth plans at the Rasp Mine and advance development activities at the Pinnacles Mine, both of which hold promising multi-metal deposits.
Partnership with a Global Commodities Player
Hartree Metals, a respected player in global commodities markets since 1997, brings not only capital but also extensive expertise in metals sourcing, trading, and marketing. Their involvement signals confidence in BHM’s projects and offers strategic advantages in accessing international markets.
Pascal Larouche, spokesperson for Hartree Metals, expressed enthusiasm about the partnership, highlighting the professionalism of BHM’s management and the potential for successful commercialization of the silver-lead concentrates.
Looking Ahead
With this financing and offtake agreement now in place, Broken Hill Mines is well-positioned to advance its operational footprint and unlock value from its mineral assets. The combination of secured funding and guaranteed concentrate sales reduces execution risk and provides a clearer pathway toward production growth.
Bottom Line?
This deal marks a pivotal moment for Broken Hill Mines, setting the stage for accelerated growth and enhanced market presence.
Questions in the middle?
- What are the detailed pricing terms and benchmarks for the silver-lead concentrate sales?
- How will the repayment schedule unfold after the 12-month grace period?
- What are the timelines and milestones for development activities at the Pinnacles Mine?
