domums final call., page-2

And here's that item.

CONFIRMED OCF again mentioned AT $130M

Indaba '07 ¨C Aim looking to hedge Perkoa output

Thursday, 8 February 2007
Paul Garvey
THE managing director of emerging zinc producer Aim Resources says the company is likely to hedge a small amount of the output from its Perkoa zinc project in Burkina Faso, despite not being compelled to do so by the groups behind Perkoa's debt financing.

AIM Resources' Perkoa zinc-silver deposit in Burkina Faso

Speaking to MiningNews.net on the sidelines of the Mining Indaba event in Cape Town, Aim managing director Marc Flory said the company would not be required to hedge any of its zinc output under the terms of the soon to be confirmed debt facility.

Aim is set to complete its debt financing, believed to total around $80 million of the $145 million required to bring Perkoa into production, in the coming weeks.

However, Flory said the company would still hedge a portion of its output as means to lock in the current zinc prices, which ¨C while around 25% off the highs reached late last year ¨C are still substantially above their historical levels.

"We will look to take some minimal hedging, as these prices won't last forever," Flory said.

"But we won't be hedging out the blue sky."

The remainder of the outstanding financing requirements will be met through an equity raising when Aim lists on the Toronto Stock Exchange later this year.

Flory added that the company was close to finalising negotiations for an offtake agreement with commodities trading group Louis Dreyfus.

Aim expects Perkoa to have a payback period of 12-18 months and an operating cash flow of $130 million per annum.

The mine is expected to produce around 70,000t of zinc a year.


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