VAN 0.00% 4.7¢ vango mining limited

incoming ann

  1. 2,438 Posts.
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    26 May 2011
    The Companies Announcements Office
    ASX Limited
    China Minsheng Bank Corporation?s Letter of Proposal for Project Financing SARCO
    We are very pleased to announce a significant development in one of our announced
    milestones. Sino Australian Resources Co., Ltd (?SARCO?)1 has received a signed letter
    of proposal from China Minsheng Banking Corporation Ltd (?CMBC?)2 in relation to
    SARCO?s announced plan to build a US$600million 600,000tonne per annum capacity
    alumina refinery in Laos.
    CMBC, ?It is the bank?s intention to provide the necessary project financing SARCO
    requires. ...... We believe the project in Laos presents a significant opportunity for
    SARCO and the Chinese alumina market. ........We think a 70% lending ratio can be
    applied to this project.?
    We welcome CMBC?s proposal. CMBC is one of the largest privately owned and listed
    banks in China (listed on the Shanghai Stock Exchange). It has a market capitalisation of
    160billion Chinese Yuan. CMBC has enjoyed a close relationship with China Non-Ferrous
    Metal Industry?s Foreign Engineering & Construction Co. Ltd (?NFC?). It has projectfinanced
    many of NFC?s EPC projects in the past.
    We are continuing our discussions with CMBC regarding SARCO?s project financing
    needs. We also continue to have dialogues with other financial institutions. We plan to
    secure the best project financing package agreement prior to IPO of SARCO.
    A good project financing package is a critical building block in SARCO?s planned alumina
    refinery. SARCO is advantageous in having close relationships with Chinese banks that
    understand the long term nature of a refinery and the underlying macro fundamentals
    supporting the economics of building the refinery.
    We thank CMBC for its support. It is a strong vote of confidence in SARCO. An attractive
    project finance package will ensure SARCO?s alumina refinery has long term financing
    cost certainty and boost long term intrinsic value in SARCO.
    If you have any questions please contact Frank Zhu, Head of Corporate
    Development via [email protected].

    Frank Zhu, CFA
    Ph: 61 2 8307 3877

    1 NFC and ORD own 51% and 49% respectively.
    2 http://www.cmbc.com.cn/index_en.shtml and stock code 600016 (Shanghai Stock Exchange).
 
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