Following is from the announcement released on 15/3/07seems like...

Following is from the announcement released on 15/3/07

seems like the main reason the debt finance not finalised yet (not rejected. still in progress) was due to the need of further testwork.

Delcining copper price must have been one of the concerns according to some news article. but it's not a main issue any more since the copper price bounced back up to US$3.30~3.50/lb.

The FINAL DUE DILIGENCE REPORT will be completed at around sept 07. and the debt finance decision will be made based on it.

Wish we get some update on how much test work they have done and what impact it had on the project.
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In order to progress financing prospects for the project from financial institutions it was necessary to subject the study to an external due diligence review by an independent technical expert. This review included the production of a comprehensive due diligence report.

Snowden Mining Industry Consultants (Snowden) were commissioned by Universal¡¯s debt financing advisor Prime Corporate Finance to undertake the review.

Snowden made a number of findings relating to the risks associated with the implementation of the Roseby Copper Project and a number of recommendations were made to enable the risks to be mitigated. Universal is undertaking technical work as a matter of priority to address these risks. It is anticipated that this will improve the level of confidence in the implementation of the project and accordingly the ability of the company to obtain project finance.

The risk factors which have been highlighted as requiring further work are primarily related to the amount of test work that has been undertaken to confirm the metallurgical characteristics of the ores.

More comminution test work will also be undertaken in order to enable detailed design work to take place on the milling circuit. Some issues were also identified with the classification of the Mineral Resources but these have been largely addressed by the drilling campaigns that have taken place subsequent to the results of the feasibility study being announced. A number of other less significant issues have been raised and these should not impact on the overall timeline for the project.

The final due diligence report on the revised development strategy including a proposed development timetable is not expected to be completed before September 2007.

The ongoing optimisation work will include a review of a smaller scale, high grade operation with inherent lower operating and capital costs and potentially improved economics. It is still considered that the sequential option involving the prioritization of sulphide treatment is the best approach to extracting value from the Roseby deposits and this will be examined in more detail.