Ann: Advanced Off-Take and Debt Negotiations For , page-2

re: Ann: Advanced Off-Take and Debt Negotiati... „h Indicative bank debt term sheet received for up to $80m to support
development of Silver Hill project
„h Expression of Interest received for off-take of 30,000tpa high grade gold, silver
and copper concentrate from Silver Hill
„h Strong interest in both project development and off-take supports the
Company's view of significant Silver Hill value proposition
„h Concurrent progress on Definitive Feasibility Study supports low cost
production potential from November 2010
Conquest Mining Limited (ASX: CQT) is pleased to advise that the Company has received an
Indicative Term Sheet and detailed debt financing proposal from a senior bank to fund
construction of a mine at its 100% owned Silver Hill gold, silver and copper project in northern
Queensland.
The Company has also received a detailed proposal from a major Chinese smelter for off-take
of 30,000tpa of high grade gold, silver and copper concentrate from Silver Hill.
Conquest Managing Director, John Terpu said the strong interest in the project from
prospective financiers and off-take partner supported Conquest's view of Silver Hill as one of
Australia¡¦s highest value, lowest cost new gold projects.
¡§In terms of project funding, we are currently in the process of selecting lead arrangers and
negotiating a debt facility of up to $80 million on terms and pricing that are very attractive to
us,¡¨ he said.
¡§Combined with existing cash reserves and possible additional equity, finalising the debt and
off-take proposals will be key to meeting the total development cost¡¨
The Silver Hill Pre-Feasibility Study (PFS) completed in April this year indicated capital
payback within two years, a Net Present Value of more than $300 million and an internal rate
of return of 70%.
¡§The strong results from the PFS give us every confidence that we can secure a low cost
financing outcome that will enable us to meet our expedited production schedule of November
2010,¡¨ Mr Terpu said.
The bank has now completed preliminary due diligence on the project and negotiations are
continuing.