27th Jan 2005 07:01
Hardman Resources Limited27 January 2005 STOCK EXCHANGE / MEDIA RELEASE RELEASE DATE: 27 January 2005 CONTACT: Simon Potter TELEPHONE: Within Australia: 08 9261 7600International: +61 8 9261 7600 RE: HARDMAN SECURES PROJECT FINANCING FOR CHINGUETTI DEVELOPMENTPAGES: 1 Hardman Resources Limited ("Hardman" or "the Company") is pleased to announcethat it has entered into an agreement with the Australia and New Zealand BankingGroup Limited ("ANZ"), which establishes a project loan facility of US$100million. The funds will be applied to cover most (approximately 80%) ofHardman's share of the development costs of the Chinguetti oilfield, locatedapproximately 80 kilometres offshore Mauritania, West Africa. Developmentdrilling on the Chinguetti field, which is operated by Woodside, is currentlyunderway and first oil is scheduled for the end of the first quarter 2006. The terms and conditions of the loan facility are typical of large-scalefinancings of international resources projects. In addition, the facilityincludes political risk insurance cover for the benefit of the lenders, whichhas been obtained in the international market on favourable terms. Firstdrawdown under the loan is subject to a number of conditions precedent which areexpected to be satisfied shortly. The loan has been fully underwritten by ANZwhich as sole Lead Arranger and Bookrunner will coordinate the loan'ssyndication. A number of leading banks with a demonstrated capacity forinternational project financings of this kind have already expressed theirinterest to Hardman to participate in the syndication. Alan Burns, Chairman of Hardman Resources, commented: "This is a major milestone for the Company and Mauritania. The ANZ-led projectloan facility underpins the Company's transition to the status of a significantoil producer. This is a frontier financing not only in the sense that it is anew step for Hardman, but also because it is the first large scale projectfinancing for the country of Mauritania. As such, the agreements entered intorepresent a massive effort on the part of all those involved. I would like toacknowledge this effort and to thank everyone who contributed to this outcome,notably the Company's specialist advisers and consultants, our joint venturepartners, the Government of Mauritania which supported us throughout, and ofcourse the personnel of ANZ who worked alongside us over a extended period toput this facility in place. We look forward to sharing with our partners,including the Government of Mauritania, the benefits of a successful Chinguettidevelopment". SIMON POTTERMANAGING DIRECTOR This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Highlands Natural Resources