Gindalbie Metals Limited (ASX: GBG – “Gindalbie”) advises that under the previously announced funding solution Karara Mining Limited (KML) has now received a total of US$230 million to meet the additional working capital requirements of the Karara Project.
The funding package, as outlined on 25 September 2013, comprises:
? US$100 million from a recently completed concentrate pre-sale agreement with Ansteel, under similar terms and conditions to the two previous pre-sale agreements; and
? US$130 million from a new term loan facility provided by the Bank of China (BOC).
The new funds are being utilised to bolster KML’s working capital position to address the previously announced shortfall arising from the delays in ramping up production this year.
As outlined previously the package provides Ansteel the right to subscribe for new equity in KML to provide KML, if required, with sufficient funds to repay these loans.
GBG Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
