Aquila bolsters books by $250m

Aquila Resources has secured a $250 million, 12 month interim finance facility as it deals with delays in obtaining the main funding for the $6 billion Anketell Point port and West Pilbara iron ore development, and continues with the sale process for its non-core assets.

Aquila said debt funding discussions were continuing for Anketell and West Pilbara, with a detailed term sheet currently being negotiated.

It said the timetable for the development of the port still required resolution before the funding could be finalised.

“The small slippage in time is not particularly surprising given the size and duration of the facility we are negotiating,” Aquila chief executive Tony Poli said.

“China, and in particular major shareholder Baosteel, is still very keen to support the Project and for first construction to commence in Q2 2012.”

Aquila said today’s $250 million debt facilities were unsecured, and together with its cash and liquid assets of $175 million, would provide the financial backing for Aquila to continue its exploration, feasibility and project development programs.

The facility has been provided by Commonwealth Bank of Australia and National Australia Bank.

Aquila has put its Washpool coking coal and Avontuur manganese deposits up for sale to help fund the development of its stake in the 30 million tonne per year West Pilbara project and the Anketell Port.

It said the sale process for Washpool and Avontuur remained “on-track”.

At 12:15PM (WST) Aquila’s stock was down 2 cents, to $5.04.