www.findersresources.com
Finders is an emerging low cost copper cathode producer, developing a high grade 25,000 tpa copper mine on Wetar Island in Indonesia, plus a highly prospective, advanced gold-silver exploration project in Sumatra.
Finders Resources hires banks to arrange US$138mln project finance for Wetar copper mine
Finders Resources (ASX:FND) has hired a group of banks to arrange a US$138 million project financing deal to bring the Wetar copper project into commercial production.
Last month the company completed a bankable feasibility, which confirmed that the Indonesian copper project has robust economic viability and gave it a value of US$304 million.
Today it revealed that Barclays Capital, Credit Suisse and Standard Bank have been appointed mandated lead arrangers (MLAs) for loan facilities totalling US$138 million.
They will provide a US$103 million loan facility to fund construction, a US$20 million cost-overrun facility will be put in place to cover unforeseen increases in project costs. Another US$15 million will be made available to cover working capital requirements, like short‐term tax obligations.
“After the successful demonstration stage leading to a positive BFS result, Finders is on the brink of realising our goal of commercial production,” said managing director Chris Farmer.
“This appointment builds on momentum gained by the recent granting of the key mining and processing permits and the release of the Bankable Feasibility Study in June.”
“Standard Bank, Credit Suisse AG and Barclays Capital were appointed after an extensive selection process and are proven partners for mining projects around the world, particularly in Indonesia. The calibre of the banks supporting the project is a reflection of Wetar’s sound economic credentials. We are looking forward to a successful relationship.”
Finders said it expects to get clearance for the financing package by September.
