Finders to raise $138m project finance for Wetar copper project

Australia and London-listed firm Finders Resources Limited announced on Thursday that it has appointed Barclays Capital, Credit Suisse AG and Standard Bank Plc as Mandated Lead Arrangers (MLA) for facilities totalling US$138 million to fund the commercial development of the Wetar copper project in Maluku.

The company said the facilities include term loan facility of $103m to fund construction, cost overrun facility of $20m available in the event of unforeseen increases in project costs and working capital facility of $15m available to fund certain short-term tax obligations

The funding will support the planned construction of the Wetar copper project, based on the recently completed Bankable Feasibility Study. The study confirms the robust economic viability of the project and estimates a net present value of $304 million.

The provision of the facilities will be subject to due diligence, credit approvals, completion of project finance documentation and typical conditions precedent for a financing of this nature. The current timetable is for the MLA to obtain credit approval for the facilities in September 2011.

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

Finders expects to provide further updates regarding the status of the conversion and permitting of the forestry areas covering the proposed mine site. The conversion process is required to occur prior to the end of the year but is expected to occur sooner.(romel)