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Market: AIM
Sector: General Mining - Copper
EPIC: FML
Latest Price: 5.38p  (7.60% Ascending)
52-week High: 6.55p
52-week Low: 2.55p
Market Cap: 100.12M
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Frontier Mining
www.frontiermining.com

Frontier Mining Ltd is a mineral exploration and development Company focussed on gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties. Frontier currently operates two licenses in Kazakhstan, Naimanjal (100% owned) and Benkala (50% owned). Naimanjal operations currently consist of five projects; a producing gold mine, a test stage gold production project, a potential copper porphyry deposit with associated gold and molybdenum, and copper/gold prospects along a 25km trend including both VMS and porphyry types. Benkala is a copper-molybdenum-gold deposit located in north-western Kazakhstan, within the Urals gold/copper ore belt.

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RNS Release - Additional Benkala Project Funding

12th Jan 2012, 7:00 am
RNS Number : 4226V
Frontier Mining Ltd
12 January 2012
 



 

12 January 2012

Frontier Mining Ltd

("Frontier" or the "Company")

 

Additional Benkala Project Funding

 

Frontier Mining Ltd (AIM: FML), the AIM quoted copper exploration and development company focused on Kazakhstan, is pleased to announce thatSberbank Kazakhstan ("Sberbank") has signed an agreement to provide a loan and credit facility to KazCopper LLP (Frontier's wholly owned subsidiary through which it holds the Benkala license) to the value of $29 million dollars.  Sberbank is the largest bank in Russia and the CIS.

 

The facility is in two components, a $20 million investment loan and a $9 million working capital credit facility.  The investment loan has already been partially drawn on to fully repay the Company's $8 million existing loans with HSBC Kazakhstan and for capital purchases.  In addition, the loan will be used for the Benkala project's expansion, working capital requirements and the ongoing drilling programs at Benkala and South Benkala.  The loan is for a period of 48 months, with a grace period of 12 months and an interest rate of 9%.  The working capital credit facility is for 36 months with an interest rate varying from 7.5 to 8.5%.  The loan and facility are secured by a registered charge over the assets and share capital of KazCopper LLP.

 

Erlan Sagadiev, CEO of Frontier Mining, said: "In spite of the worsening credit markets we have been able to significantly increase the credit available to the Company and improve its terms.  We believe these new facilities reflect the progress achieved in construction to date; as well as in the financial and technical robustness of the Benkala project and represent an excellent start to 2012".

 

 

For further details please contact:

 

Frontier Mining Ltd

 

George Cole

 

+44 (0) 20 7898 9019

 

Libertas Capital (NOMAD)

 

Westhouse Securities Ltd

(Joint Broker)

 

XCap Securities plc

(Joint Broker)

 

Sandy Jamieson

 

Dermot McKechnie

Matthew Johnson

 

Jon Belliss

David Lawman

Karen Kelly

 

+44 (0) 20 7569 9650

 

+44 (0) 20 7601 6100

 

 

+44 (0) 20 7101 7070

 

Walbrook PR

Walbrook IR

Louise Mason (Media Enquiries)

Paul Cornelius (Investor Enquiries)

+44 (0) 20 7933 8792

+44 (0) 20 7933 8794

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
AGRSFUEEFFESEIF

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