mining news article

more positive media for this bewdy 'Miss NT'

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COMPASS Resources has moved to shore up $A38.66 million in funding for its $A40 million Browns oxide development in the Northern Territory via a series of institutional placements, with final funding arrangements expected to be completed by the end of April when construction starts.

Compass Resources' Browns polymetallic deposit, Northern Territory

Two major US fund managers � Harbinger Capital Partners and Citadel Investment Group � have each agreed to take 11 million Compass shares priced at $1.85 per share.

Each fund will receive the 11 million shares in two equal tranches, with the first expected to occur within a week and the second requiring shareholder approval to be sought by Compass in early May.

Successful completion of both tranches will leave Compass with about $A50 million in the bank.

Compass executive chairman Malcolm Humphreys told MiningNews.net the company would be seeking more capital, in the range of $10 million, to assist the Browns development and the base metals and uranium exploration taking place in the Browns region.

The company will spend $5 million on exploration this year.

"We've had a lot of interest expressed from metal off-take companies and others who, whilst may not be bank debt, are offering things like convertible notes," Humphreys said.

Humphreys said he expects the additional financing to be sorted out within a month.

"We're expecting to get environmental approvals in the not-too-distant future," Humphreys said.

"The wet season is a key moving date in the Northern Territory and that sort of ends at the end of April so we want to be in a position in May when we have got our funding plans in place."

Humphreys said Compass has shied away from traditional bank debt financing and this means the company can decide on its own hedging arrangements.

This will allow greater upside when it comes to selling the 10,000 tonnes of copper, 1000t of cobalt and 750t of nickel expected to be produced annually at Browns by the end of the year, Humphrey said.