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Market: ASX
Sector: General Mining - Copper
EPIC: FND
Latest Price: A$0.30  (0,00%)
52-week High: A$0.51
52-week Low: A$0.28
Market Cap: A$85.42M
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Finders Resources Limited
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.

 

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Finders Resources secures A$8mln loan from major shareholders

25th Oct 2011, 10:45 am by Sergei Balashov The company is currently arranging an additional project finance funding package of US$138 million with Credit Suisse, Standard Bank and Barclays, which are expected to seek credit committee approval in November

Finders Resources (ASX:FND) has secured a loan of up to A$8 million from two of its major shareholders to maintain development momentum at its flagship Wetar copper project in Indonesia ahead of the main project funding.

Finders is currently arranging an additional project finance funding package of US$138 million with Credit Suisse, Standard Bank and Barclays, which are expected to seek credit committee approval in November.

The money secured from Finders’ shareholders Taurus Funds Management and Resource Capital Funds will be used for deposits and progress payments on Marine Fuel Oil (MFO) generators, the transportation and import of the Whim Creek SX/EW plant from Australia as well as for general working capital purposes.

Finders has signed a deal to buy six second‐hand refurbished generators from Royce Power Engineering, representing a total capacity of 19.7 megawatts (MW).

Use of MFO generators, which offer cost savings of 15 to 20 percent compared to high speed diesel, were a key component of the bankable feasibility study (BFS).

The Whim Creek SX/EW plant, which was purchased by Finders from Straits Resources in 2009, has a nameplate capacity of 18,000 tonnes per annum of copper. The company expects the plant to provide a significant capital cost saving relative to construction of a new plant.

“The MFO generators and the Whim Creek SX‐EW plant are both important parts of our development plan for the Wetar Copper Project. Shipping Whim Creek and securing long lead time equipment such as the MFO generators represent important development milestones,” said managing director of Finders Chris Farmer.

The loan is repayable on the earlier of either the project equity raising or 24 October 2012.

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