11/07/2008 - 13:56

Minara probes standby banking facilities

11/07/2008 - 13:56

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Prevailing market conditions have prompted nickel miner Minara Resources Ltd to investigate standby banking facilities as it quashed speculation over plans to raise equity.

Minara probes standby banking facilities

Prevailing market conditions have prompted nickel miner Minara Resources Ltd to investigate standby banking facilities as it quashed speculation over plans to raise equity.

It is understood that the rising cost of inputs such as gas, diesel and sulphur which is used to process nickel and the production impact from disrupted gas supplies have encouraged the company to look at contingency measures.

The state's gas crisis, brought about by last month's pipeline rupture at the Varanus Island gas facility, had forced Minara's Murrin Murrin project to operate at two-thirds capacity over most of the June month.

However after securing alternative gas supplies last month, the company has previously said the operation is now able to operate at full capacity.

Meanwhile Minara said it has no plans "at this stage" to raise equity after speculation that the miner has approached major shareholder Glencore International about providing further financing.

"In response to recent media speculation, Minara Resources Ltd clarifies that it has no plans at this stage to raise equity. The company is currently debt free," Minara said in a statement.

Shares in Minara were down 16c to $2.48 at 13:45 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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