Finders signs off-take agreement with Standard Bank Plc
Monday, April 30 2012 - 11:07 AM WIB
Australia listed Finders Resources Limited has recently entered into an off-take agreement with Standard Bank Plc for up to 60 percent of cathode produced from the Wetar Copper Project.
Under the terms of the agreement, Standard Bank will initially subscribe for US$5.5 million of equity in Finders in exchange for the right to buy up to 40 per cent of the Wetar copper off-take.
Subject to certain conditions, Standard Bank has also committed to subscribe for a further tranche of US$5.5 million of equity on the same terms as other investors in an equity raising to be launched to fund the construction of the project, at which time Standard Bank will secure rights to a further 20 per cent of the Wetar copper off-take.
The funds will be used as part of the Wetar Copper Project financing in support of near-term capital expenditure requirements, including the pre-development activities.
"This following Standard Bank's credit approval to participate in the US$138 million project finance facilities for the project," stated the company in its quarterly activities report released on April 30, 2012.
The company also stated that the first draft of its Project Execution Plan, including integrated schedule, risk analysis and operations hazard analysis is already completed, while completed documentation pending release for formal signing by Regents Mayors and Governor of Maluku.
The Wetar Copper Project comprises the development, mining and processing of suiphide copper deposits at Kali Kuning and Lerokis located on Wetar Island, Maluku Barat Daya.
Finders has successfully operated a 1,825 tpa Cu demonstration plant, that incorporates heap leaching, solvent extraction (SX) and electrowinning (EW), with a view to optimising operating 1 parameters and design for the recently completed Bankable Feasibility Study (BFS). Approximately 2,500t of LME Grade A copper cathode has been sold to Asian markets.
The proved and probable mining reserves are measured at 8.2 Mt @ 2.5% Cu from the Kali Kuning and Lerokis deposits support a nine year mine life, but longer mine life is highly possible.
The company has also appointed The Octa Phillip Financial Group to develop strategic options for financing an accelerated exploration and development program for its Ojolali Gold-Silver Project
The Ojolali Project is an advanced gold-silver prospect covering a 13km2 system that lies within the highly productive Sumatran Gold Belt.
The Jambi deposit has potential for a 30-50,000 oz per annum operation based on the existing resource. With widespread gold in soil geochemical anomalies over an area 8km north south and up to 5km wide, Finders considers that there is strong potential for additional discoveries, including a number of target types, namely bulk low grade disseminated gold (Jambi, Jambi North, Jambi South, Belida, Supri), bonanza grade gold-silver veins (Way Neki, Batu Kuning, Kencur), high grade Ag in supergene enriched zones (Tambang Oxide, Jambi) and major vein systems in feeder structures at depth (Jambi, Tambang, Talang Harno).
Editing by Audy Zandri