14th Dec 2007 07:00
Albidon Limited13 December 2007 Level 1ALBIDON LIMITED 62 Colin St West Perth 6005 Western Australia ARBN 107 288 755 Tel: +61 8 9211 4600 Fax: +61 8 9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD 14 December 2007 US$45 MILLION FUNDING FROM JINCHUAN GROUP LIMITED, ZCCM INVESTMENTS HOLDINGS PLC AND BARCLAYS CAPITAL HIGHLIGHTS: • Albidon Limited has completed a placement with Jinchuan Group Limited ("Jinchuan") and ZCCM Investments Holdings Plc ("ZCCM-IH") to raise US$25 million at a price of US$2.95 (A$3.35/ £1.45) per share. • The Company has also secured a further US$20 million in financing from Barclays Capital ("Barclays") which has been provided on the same terms as their initial tranche of funding. • The above funding from Jinchuan, ZCCM-IH and Barclays fulfils the remaining funding required for development of the Munali Nickel Project in Zambia and will also ensure Albidon retains sufficient funds for exploration, increased drilling activities and business development activities. Munali Nickel Project The Munali Nickel Project (100% Albidon) is located approximately 60 kilometressouth of Zambia's capital city Lusaka. The Munali Project area comprises theEnterprise Deposit and a number of other nickel prospects around the Munaliintrusion, the most advanced of which is the Voyager prospect along strike fromEnterprise. US$15 Million Placement with Jinchuan The Company is pleased to announce it has completed an agreement to place5,084,746 shares at US$2.95 cents each to Jinchuan Group Limited ("Jinchuan") toraise US$15 million (A$17 million). This placement to Jinchuan was done at a 24%premium over the 30 day VWAP for the month of November for Albidon Shares. Jinchuan is China's largest producer of nickel, cobalt and platinum group metalsand is a major producer of copper. The Jinchuan Group's current nickelproduction is approximately 100,000 tonnes per annum, with a target to reach150,000tpa by the year 2010. The investment in the Munali Project is a key partof Jinchuan's strategy to meet this goal. US$10 Million Placement with ZCCM-IH The Company is also pleased to announce it has completed an agreement to place3,389,831 shares at US$2.95 cents each to ZCCM-IH to raise US$10 million (A$11million). This placement has been done at a 24% premium over the 30 day VWAP forthe month of November for Albidon Shares. ZCCM-IH is an investment holding company which is listed on the Lusaka StockExchange and quoted on the London and Euronext Stock Exchanges. The majority ofits investments are held in the copper mining sector of Zambia. The Company'sshareholders are the Government of the Republic of Zambia (GRZ) with 87.6%shareholding and private share holders with 12.4%. ZCCM-IH holds equityinvestments in many Zambian mining organisations including Equinox MineralsLimited, Chambishi Metals Plc, Chibuluma Mines Plc, Kansanshi Mining Plc,Konkola Copper Mines Plc, Luanshya Copper Mines Plc, Mopani Copper Mines Plc,Maamba Collieries Limited, NFC Africa Mining Limited and Ndola Lime Ltd. Italso holds an equity investment in a private power distribution company,Copperbelt Energy Corporation Ltd. US$20 Million Senior Debt Financing The European Investment Bank ("EIB") and Barclays Capital ("Barclays") weremandated to act as joint Lead Arrangers to provide a financing facility forMunali of up to US$60 million, as announced in January of this year. Barclays have advised that they have now received formal credit approval toprovide a further US$20 million in senior debt funding for the Project. Togetherwith the equity capital raising of US$25 million with Jinchuan Group andZCCM-IH, this completes the financing arrangements required for development ofthe Munali Nickel Project. The key features of this increased Senior Debt are as follows: • Further Loan amount of US$20 million. • Loan tenor of six years. • Loan is on the same terms as the previous tranche from Barclays Capital. The funding is subject to satisfaction of customary due diligence by Barclaysand EIB. Forward Programme • Complete the construction of the Munali concentrator plant - scheduled for mid Q2 - 2008 • Continue development of the Enterprise Decline. The target is to intersect the first production levels March 2008, in time for the first ore into the concentrator in mid Q2 - 2008 • Complete initial resource estimate on the Voyager prospect. If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 9480 2500. Additional information may also be viewed on Albidon's website atwww.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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