Sandfire Resources has secured a $75 million debt facility from ANZ Bank for its highly regarded $400 million DeGrussa copper and gold project in Western Australia.

The project, 900km north-east of Perth, is set to become one of the lowest cost and largest copper producers in Western Australia.

It is now seeking a $360 million underwritten secured debt facility to underpin the development of the DeGrussa Project, the company said in its June quarter report on Thursday.

Work started on open pit and underground mine development in June that is expected to take 15 months.

The mine would generate revenue of $4.2 billion and pre-tax project operating cash flow of $2.4 billion at $US1.02 a pound cash costs over its seven-plus year life, based on copper-gold mineralisation discovered, a feasibility study completed in the June quarter found.

Production would average 77,000 tonnes a year of copper metal and 36,000 ounces per annum of gold from 2013 to 2015, according to the study.

The project would generate revenue averaging $730 million a year and pre-tax operating cash flow of $440 million a year in this initial period.

Oz Minerals owns an 18.9 per cent stake in Sandfire, whose shares have risen by 13.2 per cent in the last fortnight.

AAP