3rd Aug 2007 07:00
Albidon Limited03 August 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD Western Australia ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD 3 August 2007 Market release via electronic lodgement FIRST DRAWDOWN UNDER US$60M PROJECT FINANCE FACILITY FOR THE MUNALI NICKELPROJECT HIGHLIGHTS • Albidon has satisfied all material conditions precedent required for initial drawdown by Senior Lenders under the recently signed facility agreement. • First utilisation of funds is expected in the next few months following the Company's expenditure of the Jinchuan Subordinated Loan. • Completion of all conditions for funding follows intensive scrutiny, audit and sign off on all facets of the Munali Project by the banks and their independent experts. • This represents a positive milestone in funding and development of the Munali Project. Munali Nickel Project The Munali Nickel Project is located approximately 60 kilometres south ofZambia's capital city Lusaka. A positive Bankable Feasibility Study wascompleted in July 2006 and site works commenced in September, following receiptof all required approvals. Munali Nickel Project Financing European Investment Bank ("EIB") and Barclays Capital ("Barclays") formallyapproved and signed a senior debt finance facility of up to US$60 million forthe Munali Nickel Project in May of this year. To enable drawdown of this facility, the Company completed extensive auditing byindependent experts in addition to legal due diligence and documentation, andfulfilled other conditions precedent usual for this type of project finance,including satisfying the due diligence process run by the Senior LendersTechnical Agent. The key features of the senior loan facilities are as follows: • Loan amount up to US$60 million. • Loan tenor of six and a half years. Drawdown of this facility completes funding of the Munali Project. Barclays Capital and European Investment Bank Barclays Capital, the investment banking division of Barclays Bank PLC, is aleading provider of finance to the mining sector and has been involved in anumber of project financings in Africa. The Mining & Metals team at BarclaysCapital is complemented by one of the strongest commodities groups in thebanking sector who will coordinate the risk management of the Munali project.Barclays also currently provides commercial banking services to Albidon inZambia. EIB is the long-term financing institution of the European Union and hasextensive experience of funding investment projects, including the miningsector, in Africa. This expertise includes current base metal mining andprocessing projects in Zambia and neighbouring countries. EIB has been animportant supporter of Albidon since 2002, through its investment in the AfricanLion Mining Fund. Albidon is pleased to have the support of two such distinguished groups andlooks forward to extending our existing relationships with EIB and Barclays todevelop Munali for the benefit of all stakeholders. Forward Programme for Munali The implementation of the Munali Project is progressing satisfactorily, with afocus on the following key areas of activity: • Continued development of the underground decline access. • Installation of power supply by Zesco, the Zambian power authority. • Site preparation for initial earthworks on the Munali concentrator. • Ordering of additional items of equipment for the concentrator. • Recruitment of additional key personnel to implement the Project. Initial concentrate production and subsequent project ramp up is targeted tocommence in mid 2008. If you have any queries, please contact the Chief Financial Officer, NicholasDay or Managing Director, Dale Rogers on +61 8 9211 4600 or [email protected]. Additional information may also be viewed on Albidon's website atwww.albidon.com. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 94802500. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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