Universal sets up $32m finance facility

08/07/2008 - 15:29

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West Perth-based Universal Resources Ltd has mandated the Royal Bank of Scotland and ABN AMRO in London to arrange a $US30 million bridging finance facility for the development of its Roseby copper project.

West Perth-based Universal Resources Ltd has mandated the Royal Bank of Scotland and ABN AMRO in London to arrange a $32 million bridging finance facility for the development of its Roseby copper project.

Below is the full announcement:

Universal Resources Limited ("URL" or the "Company") is pleased to advise that it has mandated The Royal Bank of Scotland plc ("RBS") and ABN AMRO Bank N.V., London Branch ("ABN AMRO") as Joint Lead Arrangers ("JLA") to arrange a Bridge Finance Facility ("Facility") of US$30 million for the Company as part of the Company's financing requirements for the development of the Roseby Copper Project in Queensland.

The Company is being advised by LinQ Corporate Pty Ltd ("LinQ")

The Facility will be in the form of US$ denominated Senior Floating Rate Notes ("FRN") with Warrants. The Facility will have a term of approximately twelve (12) months and will be utilized for the development of the Roseby Copper Project including:

- The order and purchase of several long-lead time items of equipment;

- To fund detailed engineering design and other engineering work;

- To secure bank guarantees in relation to the supply of grid power to the Project site; and

- For general working capital purposes.

The FRN holders will be entitled to equity Warrants which will be converted into ordinary shares in the Company upon exercise. Finalisation of the Facility will be subject to, amongst other things, completion of due diligence by the JLA and to the approval of Universal shareholders in general meeting to the issue of the Warrants, details of which will be provided in the Notice of Meeting to be distributed to shareholders in due course.

In addition to the Facility, the Company has received indicative offers of bank debt finance from several banks ("Financiers"). These indicative offers remain subject to the completion of due diligence and to the receipt of approvals from the Financiers' respective credit committees. The Company expects to be in a position to mandate its preferred senior debt Financiers in the near future. The Company is also negotiating with a number of investment banks for the provision of mezzanine and equity facilities to meet the balance of its funding requirements for the Project.

The appointment of RBS and ABN AMRO is a significant step as the Company moves towards its goal of commencing development of the Roseby Copper Project.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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