how much avb is too much (seriously)?, page-20

blowhole absolutely- allow me to regurgitate the announcement for all to read again

HIGHLIGHTS
Ø? Up to US$58m debt facility
Ø? Up to eight year term
Ø? Up to two year grace period on principle repayments
Ø? Commercial interest rates
Ø? Commercial terms / fees standard for this type of facility
Ø? Strategy agreed to fast track bankability
KEY TERMS
The Stage I Copper Project total investment is estimated at US$70m (US$50m
Pre-production + US$10m contingency + US$10m working capital). Upon the fulfilment of certain conditions precedent, this un-brokered facility will be available to Avanco’s Brazilian subsidiary and based upon an 80/20 debt to equity ratio for up to US$58m of debt.
The loan will be denominated in Brazilian Reais and based on the nominal cost of CDI (Brazil Interbank Lending Rate1) plus an interest rate that will be confirmed at the time of execution and will, in any event be competitive with market rates for similar transactions2 in Brazil.
The main conditions precedent for the drawdown of funds include, but are not limited to:
Ø? Avanco to contribute with a minimum balance of US$12m loan equity component.
Ø? Project to have an Installation License and Mining Permit or Trial Operating License and Trial Mining License (Avanco received the latter in
2012) from competent local authorities.
Ø? Banco Votorantim’s review of the definitive cash flow model, which must indicate a minimum debt service ratio of 1.3. (Current modelling indicates the ability to meet this requirement).
Ø? Final corporate due-diligence and approval by Banco Votorantim’s internal committees.
AVANCO RESOURCES LIMITED
Hedging is not required. Avanco retains the right to examine alternative debt
options with other financiers.
As one of Brazil’s biggest commercial banks and part of the Votorantim
Group, Banco Votorantim has considerable project finance mining expertise.