kaboko mining concludes us$3 million debt faci

Kaboko Mining concludes US$3 million debt facility with Noble Resources

Thursday, February 07, 2013 by Proactive Investors

Kaboko Mining (ASX:KAB) has secured US$3 million in balance funding of Tranche A from Noble Resources as part of a $10 million debt facility and long term manganese off take agreement from the projects in Zambia.

The two parties are finalising Noble's due diligence items with respect to licensing conditions for the project and the drawdown is likely to be concluded in the next 5 to 10 days.

Noble had earlier made a $1 million payment in advance of the confirmation of licensing conditions in relation to the Northern Manganese project at Mansa. The $3 million payment, which was part of Tranche A would have been made after the confirmation of the licences.

The $4 million funding provides Kaboko with all the funding necessary to complete the mine development and associated plant and equipment purchases at its Northern Manganese project at Mansa and start deliveries of high grade manganese ore to Noble.

Under Tranche B, an advance of US$4 million will be provided upon delivery by Kaboko of 105,000 tonnes of manganese ore under the 10 year Manganese ore off take agreement.

Separately, Kaboko has also secured a new prospecting permit at the Emmanuel project which neighbours existing licence boundaries.

Kabako currently holds majority interest in five large scale prospecting licences and three small scale mining licences covering over 2,700 square kilometres in the highly prospective manganese mining regions in Zambia.

The company has completed its preliminary mine plans at Northern Zambian project wit initial planned run-of-mine production of 5,000 tonnes per month ramping up to 10,000 tonnes per month in the fourth quarter of 2013.

The Company is focused on resource definition drilling and exploration across its large license holdings and establishing long-term sustainable production of a high grade and high quality manganese ore from its Emmanuel, Kanona and Mansa, Northern Zambian Projects.


http://www.proactiveinvestors.com.au/companies/news/39286/kaboko-mining-concludes-us3-million-debt-facility-with-noble-resources-39286.html