Austindo secures US$26m project finance from ANZ

Mining company Austindo Resources Corporation NL said Thursday that ANZ Investment Bank had agreed to provide project finance facilities worth US$26 million and associated hedging facilities for the development of the Cibaliung Gold Project in Banten province.

?The bank has also agreed to provide additional cost overrun and working capital facilities,? Austindo said in a statement, adding that drawdown of funds from the bank under the proposed facility would be subject to the completion of loan documentation and satisfaction of conditions precedent.

The Cibaliung Gold Project is operated through a joint venture company ? PT Cibaliung Sumberdaya in which Austindo is entitled to an 83.76 percent interest and state diversified mining firm PT Antam Tbk retains a 16.24 percent interest.

Key project parameters are:
▪ Mine life of 6 years with a production rate of 220,000 tons per annum with recovery of gold and silver by a conventional CIL processing plant;
▪ Mining will be by conventional underground cut and fill stoping with decline access;
▪ Annual production of approximately 70,000 ozs gold equivalent;
▪ Initial capital expenditure of some US$ 34 million;
▪ Average life of mine cash operating costs of less than US$200/oz.

Austindo also said it expected to raise additional equity funds in the near future which, together with the project debt facilities, will enable the commencement of construction in the first half of 2005 with first gold production in 2006.

?Commencement of construction also remains subject to obtaining project development permits and environmental approvals, the process of which is well advanced,? Austindo added. (robert)