20/08/2012 - 09:44

Gindalbie covers $US250m shortfall

20/08/2012 - 09:44

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Gindalbie covers $US250m shortfall

Gindalbie Metals has secured an additional $US250 million in financing required to complete construction of its Karara iron ore project in the Mid West.

Gindalbie said today it had shored up a funding shortfall it originally announced in July through the signing of a mandate letter and term sheet with the China Development bank for a project debt facility.

The funding shortfall arose after the value of the Australian dollar performed significantly higher than the exchange rate assumptions used for the Karara project’s original $US1.2 billion project loan and $336 million working capital facility.

Gindalbie managing director Tim Netscher said he was very pleased to have secured the additional financing solution.

“It also demonstrates convincingly that we have successfully delivered on our strategy of appropriately debt-funding the Karara project on continued attractive terms and conditions,” Mr Netscher said.

“I am confident that this signals a major milestone for Gindalbie as we deliver on our remaining project development targets and shortly commence commissioning activities at Karara.”

Gindalbie is targeting production of 10 million tonnes per annum at Karara in its first stage, ramping up to 16mtpa once stage two is completed. At full production, the mine’s output will be 30mtpa.

At 9:40AM, WST, Gindalbie stocks were up 2.3 per cent, trading at 44 cents.

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