Bootu Creek secures $20m in project funds from CBA

West Perth-based OM Holdings' wholly-owned manganese mining subsidiary Bootu Creek Resources has secured $20 million in project financing for its Northern Territory operation.
Bootu has been given access to a limited recourse project financing facility worth $20 million and a foreign exchange hedging facility with the Commonwealth Bank of Australia.
The project financing will be used to fund Bootu's 75 per cent interest in the Bootu Creek manganese project's remaining development and working capital programmes.
The project loan is for a period of three years and includes a $5 million deposit by Bootu into a cost overrun account with the Commonwealth Bank, which will be used in the event that the capital cost to complete the project exceeds the budgeted cost.
Hedging contracts will be entered into equating to 40 per cent of annual US dollar revenues in the first year of production.
OM Holdings listed on the Australian Stock Exchange in 1998, growing into a processor and trader of manganese product with operations in Australia, China and Singapore. Through its Singaporean-based commodity trading, it has established itself as a significant supplier of manganese to the Chinese market.