Andrew Forrest’s Fortescue Metals Group is expected to finish its internal financing plans this week so US bank Citigroup can start the much-awaited funding campaign for the company’s $2.5 billion iron ore project in the Pilbara.
It won’t be a moment too soon, with the top-spending junior exploration company outlaying $20.8 million in the December 2005 quarter.
This is about the same as the previous quarter and leaves just $40.7 million in the bank, probably just enough for another quarter’s exploration with the deduction of other expenses.
FMG executive director Graeme Rowley told WA Business News he expected all the boxes to be ticked from the company’s point of view before the end of the week.
Previous shareholder approvals for a potential $250 million-plus equity raising expired earlier this month. However, the company has raised the possibility of selling shares in two subsidiaries that hold FMG’s main assets, which would not required shareholder approval.
The project is targeting production of at least 45,000 tonnes a year, beginning in 2008.
The top 10 junior international exploration spenders for the December 2005 – way behind FMG – include seven Western Australian companies, two Victorian and a Queensland company. Half of them have their major projects overseas.
Ballarat Gold spent $7.5 million during the quarter ahead of its first gold pour in December.
Perth-based gold producer and explorer Gallery Gold, in the process of being taken over by Canadian IAMGold Corp, concentrated on its African assets, while Victorian Indophil Resources looked to its Philippines copper/ gold project and Queenslander Pan Aust Resources its Laotian gold operations.
The rest of the top 10 were all locals, including: Moly Mines, which has specialty and base metals projects in the Pilbara; Western Areas, which focused on its Forrestania nickel operations; Murchison Metals its Mid-West region iron ore projects; Goldstream Mining its gold, base metals and platinum group projects in Africa and Australia; and Albidon on its African nickel assets.
