03/11/2008 - 10:14

Gindalbie in halt over funding talks

03/11/2008 - 10:14

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Gindalbie Metals Ltd has entered a trading halt pending the release of an update on funding discussions over its $1.8 billion Karara iron ore project.

Gindalbie Metals Ltd has entered a trading halt pending the release of an update on funding discussions over its $1.8 billion Karara iron ore project.

Shares in the company last traded at 41.5 cents, with the halt expected to be in place for up to 48 hours.

Chinese project partner AnSteel is making staged payments totaling $372 million towards the project to earn an interest.

So far AnSteel has paid $228 million, and the last payment of $144 million was due last month. On completion of that payment, AnSteel's interest in Karara will increase to 50 per cent.

Gindalbie is contributing $162 million towards Karara.

Gindalbie has previously said that AnSteel is in advanced negotiations with China Development Bank to provide the senior debt finance of $1.4 billion for the project, with terms and conditions to be in place later this year.

The securing and underwriting of the project debt is one of AnSteel's buy-in conditions.

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