17/11/2011 - 13:52

Richmond up on finance offer

17/11/2011 - 13:52

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Richmond up on finance offer

Richmond Mining shares have rocketed after the company said it had received a financing offer worth up to $US180 million for the development of its Buena Vista iron project in Nevada.

At close of trade today Richmond’s stocks were up nearly 30 per cent, to finish the day at 31 cents.

The Perth-based company said it was moving to mandate a “prominent international bank” as its lead arranger, subject to the final negotiation of an acceptable terms sheet.

Richmond said the Buena Vista iron project would cost around $161 million in its definitive feasibility study.

The company said it was also undertaking a review to identify areas of potential capital and operating cost savings, which will be completed by the end of the year.

“Richmond is pleased with the strong interest expressed in the project by all parties and is now looking forward to finalising project financing,” the company said in a statement to the ASX.

“High quality magnetite concentrate is scheduled to be available for shipping within 9-12 months of finalising project finance.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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