Nedbank Capital has withdrawn from Perth-based Tiger Resources’ $US80million debt financing facility for its Kipoi copper project in the Democratic Republic of Congo.
The South African bank was lined up to provide part of funds that would be extended to the operator of the Kipoi copper project, Société de Exploitation de Kipoi (SEK), as part of Tiger Resources’ efforts to expand the mine’s operations.
The Kipoi mine produced 36,966 tonnes of copper in 2012 and at its current capacity has a mine life of just over three years.
The expansion of the mine is set to cost $161 million and commenced in January this year.
The expansion would include a solvent extraction electowinning plant that, according to Tiger Resources, would increase copper production and extend the mine’s life to over nine years.
The company has said it is in discussions with international financial institutions to replace Nedbank.
Tiger Resources, managing director, Brad Marwood, said the company was fortunate that when undertaking the initial financing tender process they, “received competitive offers from a number of major financial organizations”.
Mr Marwood said that this “enables us to replace Nedbank Capital with little or no disruption to the funding timetable”.
The new participant in the project will join South African institution FirstRand Bank as the co-arranger of the term facility which will be supported by the Export Credit Insurance Corporation of South Africa.
Other African financial institutions Rawbank and BCDC, who operate in the Democratic Republic of Congo (DRC), have offered to extend $20 million standby credit lines to SEK.
Tiger Resources has a 60 per cent interest in the Kiopi copper project with the remaining 40 per cent being held by La Générale des Carrière et des Mines, a DRC State-controlled company.
Tiger Resources announced in February that the project had a resource of 840 kilo-tonnes of copper.
