30th Apr 2007 10:58
Albidon Limited30 April 2007 Level 1 62 Colin St West Perth 6005 ALBIDON LTD Western Australia ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD Market release via electronic lodgement US$60M FINANCE APPROVED FOR MUNALI NICKEL PROJECT HIGHLIGHTS • The European Investment Bank and Barclays Capital have formally approved and signed a senior debt finance facility of up to US$60 million for the Munali Nickel Project. • The financing provides the remaining funding required for development of Munali, including construction costs, working capital requirements and will also ensure Albidon retains sufficient funds for exploration and business development activities. • Approval of the senior debt financing marks the successful completion of due diligence and detailed documentation. 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. A capital raising was completed in October to provideUS$35 million of equity finance for the project funding. Following the signing of an offtake agreement in December 2006, an offtakefinancing package was recently concluded with Jinchuan Group, comprising US$20million in subordinated debt and a US$5 million equity investment. US$60 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. EIB and Barclays advise they have now received formal board and credit committeeapproval to complete the senior debt funding arrangements for the project.Together with the October 2006 equity capital raising of US$35 million and US$25million in offtake financing recently concluded with Jinchuan Group, thiscompletes the financing arrangements required for development of the MunaliNickel Project. The key features of the senior loan facilities are as follows: • Loan amount up to US$60 million. • US$40 million to be provided by EIB and US$20 million to be provided by Barclays. • Loan tenor of six years. • Political risk insurance required on only a portion of the facility. The funding is subject to satisfaction of standard conditions precedent forfirst draw down. European Investment Bank and Barclays Capital 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. Barclays Capital, the investment banking division of Barclays Bank PLC, is aleading provider of finance to the mining sector and has a wealth of experiencein financing projects in Africa. The Mining & Metals team at Barclays Capital iscomplemented by one of the strongest commodities groups in the banking sectorwho will coordinate the risk management of the Munali project. Barclays alsocurrently provides commercial banking services to Albidon in Zambia. 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, with a focus on thefollowing key areas of activity: • Development of the underground decline access following successful completion of the boxcut. • Tender of the long term mining contract. • Installation of the long term power supply system 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. By order of the BoardAlbidon Limited 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]. 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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