Banks approve financing for Wetar copper project

ASX-listed Finders Resources Limited said that its three mandated lead arrangers have received credit approval to provide US138 million financing that will be used to fund the commercial development of its Wetar copper project in Indonesia next year.

The company announced in Jakarta on Wednesday that the three mandated lead arrangers (MLA's) are Barclays Capital, the investment banking division of Barclays Bank Plc, Credit Suisse AG, and Standard Bank Plc.

As announced in August this year the facilities include a term loan facility of up to $103 million to fund construction, a cost overrun facility of $20 million and a working capital facility of $15 million.

It said that the drawdown of the facilities was subject to standard conditions precedent for a facility of this nature including completion of satisfactory documentation, , permitting, securing and spending the project equity and implementation of an agreed hedging programme.

Finders Managing Director Chris Farmer said the financing was a significant vote of confidence in the Wetar copper project.

?In a very difficult global banking environment, all three MLA?s have received credit approvals. The three-banks are recognized global leaders in mining project finance and their support speaks highly of the economics of the Wetar copper project and its long term viability.

?Finders is one of the few listed ASX pre-production copper companies with a clear path and timeline to production. The coming months will be important for us as we move into the construction phase - 2012 will be a very big year for the company,? Farmer said.

The key conversion of forestry status, which will allow formal commencement of the project, is in the final stages of documentation and Finders now expects the process to be completed in January, 2012.

Finders is being advised by Navigator Project Finance (part of the Corality Finance Group) in relation to the bank facilities. (*)