Finders Resources secures funding for Wetar copper project
Monday, May 12 2014 - 02:48 AM WIB
ASX-listed copper producer Finders Resources Limited announced Monday it has finalized the two key components of the funding for the expansion of its Wetar copper project in Maluku Province, Indonesia, from the current capacity of 3,000 tons per annum of copper cathode to 28,000 tpa.
The company said in a statement that leading international trading house, Daewoo International Corporation (Daewoo) will provide US$45 million in project level equity.
BNP Paribas, Commonwealth Bank of Australia, Hong Kong and Shanghai Banking Corporati on (HSBC) and Societe Generale (the senior Llenders) have signed a credit approve d commitment letter for $165 million of senior loan facilities, the statement added.
Finders, which started copper production from Wetar on 31 March 2014, is now expected to start construction of the project expansion works in June 2014. Production from the expanded plant is scheduled to come online in the second half of 2015.
Elsewhere, the company said that Daewoo has received investment committee approval to invest $45 million for between 24 and 27 percent of Finders? Indonesian subsidiary PT Batutua Tembaga Raya (BTR) as part of broader strategic partnership between Daewoo and Finders.
?Daewoo?s final ownership percentage will be determined following clarification of certain Indonesian taxation, royalty and regulatory issues but will not be more than 27 percent nor less than 24 percent,? the statement said.
It added that Daewoo and BTR will enter into an off take agreement in relation to 20 percent of the copper cathode produced by BTR. Daewoo will pay prevailing market prices for the cathode over the life of the project. This agreement with BTR secures offtake arrangements for 100 percent of its cathode production.
Editing by Reiner Simanjuntak