blackrock funding, page-34

So many post don't know if anyone is on PR watch,

http://www.proactiveinvestors.com.au/companies/news/48860/avanco-resources-agrees-12m-royalty-funding-for-brazilian-copper-project-with-blackrock-48860.html

Avanco Resources (ASX: AVB) has reached a non-binding agreement on a $12 million royalty based investment with BlackRock World Mining Trust for its Antas North Copper Mine in Brazil.

Importantly, execution of the agreement would secure the shortfall funding required to potentially position Antas North Stage 1 as being “fully financed into production”.

Antas North is envisaged as a project capable of producing 12,000 tonnes of copper and 7,000 ounces of gold per annum.

It has low technical risk and low costs with expenditure estimated at US$70 million and direct operation costs of US$0.75 per pound of copper.

Antas North and Pedra Branca (Stage 2) have total Resources of 60.64 million tonnes at 1.24% copper, 0.33 grams per tonne gold for 755,000 tonnes of contained copper and 638,000 ounces of gold.

Blackrock

The deal will see Blackrock providing US$12 million in return for Net Smelter Return royalty payments of 2% on copper, 25% on copper and 2% on all other metals that will be produced from Stage 1 and Pedra Branca licence areas.

In addition:
- Other discoveries within Avanco’s current licence portfolio will carry a flat 2% NSR production royalty;
- Completion of the proposed transaction will be conditional on meeting certain Stage 1 milestones and the BlackRock investment amount would be paid in instalments pro-rata with disbursements of the senior debt;
- Both parties will shortly begin to work on the heads of terms for the proposed transaction, followed by negotiation and signing of definitive legal documentation. The company will grant BlackRock a period of exclusivity to conduct due diligence to its satisfaction and agree tax and legal structure of the Proposed Transaction; and
- BlackRock has not expressed interest in Board positions.