ARH 0.00% 0.5¢ australasian resources limited

announcement

  1. 210 Posts.
    ASX ANNOUNCEMENT
    24 August 2007
    The Manager
    Company Announcements Office
    Australian Stock Exchange Limited
    4th Floor, 20 Bridge Street
    SYDNEY NSW 2000
    Dear Sir/Madam
    China Government owned EXIM Bank supports the development of Australasian’s Balmoral South Iron Ore Project
    The development of Australasian Resources Limited’s (“ARH”) Balmoral South Iron Ore Project (“Project”) located in the Pilbara region of Western Australia, moved closer to financing and development with the visit of an executive financing team from China’s Export Import Bank of China (“EXIM Bank”) to the company during the week.
    Senior representatives of EXIM Bank headed by the Deputy General Manager of the Corporate Banking Department, Mr Liu Zhenggui, spent the past week in Perth, Western Australia, in discussions with representatives of ARH and its strategic partner, steel producer Shougang. These meetings were designed to assist EXIM Bank in pursuing the undertaking of the financing of the Project in accordance with the commercial arrangements the Company has agreed with Shougang Entities.
    From Left: Michael Chen, Director, Deputy General Manager, Shougang Holding (Hong Kong) Ltd
    Liu Zhenggui, Deputy General Manager, China EXIM Bank
    Andrew Caruso, Managing Director, Australasian Resources Ltd
    The EXIM Bank team members confirmed to Australasian Resources Managing Director, Andrew Caruso, its interest in providing the necessary project finance to allow the Project to proceed to development.
    The provision of any financing by the EXIM Bank would be in accordance with the legal requirements of Shougang’s decision to proceed with full-scale project development (see ‘Agreement with Shougang Entities’ below).
    For personal use only
    Page 2
    Commenting on the status of discussions this week, Mr Liu Zhenggui from EXIM Bank said, “We are confident of the success and are supportive of the development of the Balmoral South Iron Ore Project”.
    Mr Caruso confirmed the EXIM Bank’s visit and support for the Company’s Project was as a result of an invitation issued by Shougang. Both Shougang Corporation and the EXIM Bank are 100% owned by the Government of China.
    “Shougang has proven to be a very important partner towards the development of the Project,” Mr Caruso said.
    Mr Caruso went on to say “Shougang is providing the Company with significant technical support. The establishment of Shougang’s office in Perth earlier in the week and it’s staffing of the office with the necessary Shougang technical team to assist the Project demonstrates that support. Furthermore, the visit of the EXIM Bank at Shougang’s invitation further endorses our vision to accelerate the development of the project.”
    Export Import Bank of China
    EXIM Bank, the Export Import bank of China, was founded in 1994. It is a fully government-owned policy bank under the direct leadership of the State Council of China.
    EXIM Bank is China’s leading international credit bank, having executed numerous transactions in support of resource, construction and infrastructure projects around the world.
    Their current business scope includes:
    �� Providing export credit and import credit;
    �� Providing loans for overseas construction contracts and overseas investment projects; and
    �� Raising funds in domestic and overseas capital markets and money markets.
    According to the Bank’s annual report 2006, it supported the export of mechanical and electronic products, high and new-tech products, overseas construction contracts and overseas investment projects valued at USD 66.7 billion, and the import of resources products and technical equipment valued at USD 5.7 billion.
    Agreement with Shougang Entities
    International Minerals Pty Ltd (IM), a 100%-owned subsidiary of ARH, executed a landmark Project agreement with Shougang Entities in March 2007 to complete studies suitable for the financing and development of its major Balmoral South Iron Ore Project.
    By meeting the full-scale project development project objective inter alia set out below, Shougang Entities shall earn a 50% interest in the share capital of IM by:
    • Providing finance for 100% of the Project funding (estimated at US$2.1 billion) through an interest free project loan: and
    • purchasing 100% of iron ore products over 25 years from the Project.
    Any queries can be directed to Andrew Caruso on +618 9322 2288.
    Andrew Caruso
    Managing Director
 
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