Just looking at Rosco's pick .
Priced at 31c has ?the market factored a lot in already??
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by ROSCO_P
Nickel - SMY (if a bank is willing to put up several times what the company is worth, then that is good enough for me). Have a look at the research reports on this one. _______________________________________________
Company Announcement
Secures $52 Million Project Financing Facility
SALLY MALAY MINING LIMITED 2003-03-13 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
* Macquarie Bank and Standard Bank London to provide project
financing facility of up to A$52 million
* Based on current capital estimates and debt facilities no
additional equity is required to develop Project
* Limited nickel hedging ensures Company maintains significant upside
to higher nickel price
* Statutory approvals are the only outstanding item now to commencing
Project construction
* Based on prompt receipt of Statutory Approvals the Project remains
on track for first shipment of concentrate in March 2004 which is
only 12 months away
A$52 MILLION PROJECT FINANCING FACILITY
Sally Malay Mining Limited (ASX:SMY) is delighted to announce that it
has accepted an offer from Macquarie Bank Limited ("Macquarie") and
Standard Bank London Limited ("Standard") for a loan facility (the
"Facility") of up to $52 million to develop the Sally Malay Project .
The major features of the Facility are as follows:
* Total funds of up to A$52 million will be available via a
combination of a Project Development facility and a Cost Overrun
facility, together the "Facility";
* Based on the current capital estimate for the SAG Mill flowsheet
and working capital estimates the Facility together with subordinated
debt facility from the concentrate customer (Jinchuan/Sino) should
provide sufficient funds for the Company to develop the Project
without requiring additional equity from shareholders;
* Credit approval has already been obtained from both banks' credit
departments;
* The Facility requires a limited volume of nickel hedging to be
undertaken prior to Facility drawdown which represents less than 15%
of the total nickel in the Sally Malay resource; and
* There are only a small number of conditions precedent remaining to
be satisfied prior to Facility drawdown;
The Company and the banks will now commence detailed Facility
documentation which should take 4-6 weeks to complete.
COMMENTARY
Macquarie and Standard's willingness to provide this A$52 million
Facility is a strong indication of the robustness of the Sally Malay
Project and the Company is delighted to have these banks as partners
in the Sally Malay Project. The Company can now move forward with the
Project development knowing that it has access to sufficient funds to
complete construction and commissioning of the Kimberley's first
nickel mine, unlocking the value of the Sally Malay deposit for our
shareholders and other stakeholders.
Macquarie and Standard are very experienced in resource banking with
a proven track record and ongoing commitment to the mining industry.
The banks have dedicated metals and mining divisions and base metal
trading capacities and are Associate Broker Clearing Members of The
London Metals Exchange. The banks have an excellent knowledge of the
base metals markets and have provided project financings for a large
number of base metals projects in Australia and overseas. They will
make excellent partners for the Company and we look forward to
working with them to develop a successful Project.
The Company would also like to take this opportunity to thank the
other financial institutions that submitted term sheets for the
provision of this loan facility.
SALLY MALAY PROJECT UPDATE
With the Project financing now secured the Company's Sally Malay
nickel-copper-cobalt Project in the East Kimberley of Western
Australia is only one step away for construction commencing. The one
outstanding item is receipt of statutory approvals from the WA
Government which the Company hopes is imminent.
Assuming Statutory Approvals are received during April 2003 the
Project timetable is as follows:
UPDATED DEVELOPMENT TIMETABLE
Statutory Approvals April 2003
Project Financing available for drawdown May 2003
Plant construction commences April 2003
Plant commissioning commences January 2004
First Concentrate shipment March 2004
P Harold
MANAGING DIRECTOR
For further information contact:
Peter Harold Keith Liddell
MANAGING DIRECTOR EXECUTIVE CHAIRMAN
Telephone +61 8 9225 0999 Facsimile +61 8 9421 1008
Website www.sallymalay.com
Email [email protected]
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