http://www.proactiveinvestors.com.au/companies/news/47750/pluton-resources-renegotiates-debt-funding-funding-to-be-spent-on-cockatoo-island-mine-47750.html
Pluton Resources renegotiates debt funding, funding to be spent on Cockatoo Island Mine
Monday, September 09, 2013
Pluton Resources and General Nice Recursos Comercial Offshore De Macau have re-negotiated a debt facility that will see $19 million to be used for construction at Cockatoo Island iron ore mine
Pluton Resources (ASX: PLV) can claim a win of sorts as an agreement has been made with General Nice Recursos Comercial Offshore De Macau Limitada on how to use A$19 million recently received from retirement of the Cockatoo Island Environmental Bond.
The funds were received from the Western Australian Department of Minerals and Petroleum as part of the Cockatoo Island Mining Joint Venture.
The GNR loan agreement was for a total of $24 million which included the $19 million previously allocated to the Environmental Bond.
Importantly, the majority of the funds will be used to pay for on-going construction and completion of the Stage 4 Seawall at Cockatoo Island, allowing access to further high grade haematite up to 68.5% iron.
The renegotiation for the use of funds means that CIMJV can now focus on mining to the approved limits allowing the completion of Stage 4, which will assist the CIMJV to become a stable supplier of high grade Cockatoo Island iron ore.
The drilling will aim to improve the resource and reserve position at Cockatoo Island.
Pluton has also entered in to a private share placement with GNR for 14.9% and an additional 5% of the company on an expanded capital basis at an issue price of $0.0932 per share.
To date Pluton has repaid $4.8 million and delivered 2 shipments to GNR. The price Pluton receives for each monthly shipment is commercial in confidence but is understood to be commensurate with other Australian producers at a slight discount to the market price.
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