another step forward in the right direction

Announcement just out.

Cheers notthemama


July 2008
Australasian Resources and Shougang Appoint
BNP Paribas as Advisory Bank
• Advisory bank appointed to review Bankable Feasibility Study for Balmoral South Iron Ore Project in Western Australia, and
• Appointment of advisory bank is key step towards facilitating Finance Offer for development of Project.
Australian iron ore company Australasian Resources Ltd (ASX: ARH) has, together with project partner Shougang, appointed BNP Paribas (“BNPP”) as its Advisory Bank.
BNPP, appointed by the company’s wholly owned subsidiary International Minerals Pty Ltd (“IM”), will review the Bankable Feasibility Study for the Balmoral South Iron Ore Project. This review will be in the context of the likely requirements of Chinese policy banks that are expected to be the primary source of project funding.
Timefull Investments
(Shougang Concord)
6.33%
As a leading finance institution, BNPP has extensive experience in the structuring and financing of mining projects and has a close working relationship with key Chinese policy banks, including China EXIM bank, who has previously shown strong interest in the Project.
Mount Sun Investments
Ltd (APAC Resources)
4.74%
Australian Minerals
(Hong Kong) Holding Ltd
3.49%
BNPP has impressive credentials in mining finance and was named the “Number One Mining Mandated Lead Arranger” by Infrastructure Journal in 2007. * escrowed until April 2009
Balmoral Project
Highlights
• Right to mine 1 billion tonnes of
magnetite iron ore.
• Strategic alliance with China’s fourth
largest steelmaker, Shougang
Corporation.
• Shougang has committed A$56
million to ARH and has the option to:
inject a further A$42 million; fully
fund the project through an interest
free debt facility; and purchase all
iron ore products from the Balmoral
South Project.
Media contact
PPR (WA) Mr David Tasker
Tel:+61 8 9388 0944
The decision to appoint BNPP was made following an extensive review of a number of proposals from leading banks with extensive experience in the structuring and financing of mining projects.
IM and Shougang are continuing to work in a collaborative manner towards the goal of obtaining a Finance Offer. Under the Susan Palmer Deposit Project Agreement, Shougang has exclusive rights to deliver a Finance Offer to IM which would provide the necessary funding to implement the Project.
IM will also host seven representatives from Beijing Shougang International Engineering Technology Co. Ltd (BSIET) for a week in early August as a key step towards obtaining a Finance Offer.
Andrew Caruso