Jabiru Metals has secured $14 million in funding through a silver hedge facility with BNP Paribas.
Jabiru Metals has secured $14 million in funding through a silver hedge facility with BNP Paribas.
In a statement to the Australian Securities Exchange, Jabiru said that the company's debt free status provided the ability to take advantage of the silver price moving to historical highs to provide working capital and fund its growth opportunities.
"The structure provides Jabiru with a $14 million up-front cash payment in return for forward sales of 680,000 ounces of silver over the period from December 2010 to June 2012," the statement said.
"The quantity of silver hedged represents approximately 60 per cent of forecast payable silver production over this period."
Jabiru hopes to progress several projects over the next year, including bringing the Bentley mine on line, constructing the Geraldton concentrate shed and continued feasibility and exploration drill programmes at the Jaguar and Stockman Projects.
See company statement below:
Jabiru Metals Limited ("Jabiru") is pleased to announce that it has completed a prepaid A$14 million silver hedge financing with BNP Paribas. The company's debt free status provided the ability to take advantage of the silver price moving to historical highs (above US$20 per ounce) to provide working capital and fund its growth opportunities.
The structure provides Jabiru with a A$14 million up-front cash payment in return for forward sales of 680,000 ounces of silver over the period from December 2010 to June 2012. The quantity of silver hedged represents approximately 60% of forecast payable silver production over this period.
The upcoming year will be one of growth for Jabiru with significant investment to bring the Bentley Mine on line, construction of the Geraldton concentrate shed, continued feasibility and exploration drill programmes at the Jaguar and Stockman Projects.
