This must be looking good for AIM RESOURCES future share price:- AIM Resources ups Perkoa zinc mine cost estimate, new funding
LONDON (AFX) - AIM Resources Ltd said it has revised the budget estimate for its Perkoa zinc mine located in Burkina Faso, West Africa, to 135 mln usd which includes contingency and mining contractor costs.
AIM also announced new financing arrangements with Standard Bank mandated to provide project finance facilities totaling 90 mln usd; Cartesian Capital mandated to co-ordinate a 35 mln usd convertible note issue and Seymour Pierce co-ordinating a 20 mln usd share issue.
The company said the increased costs associated with this accelerated development schedule should be more than offset by the project delivering into an anticipated period of stronger than average zinc prices. The current zinc price is approximately 3,700 usd per tonne.
Initial zinc ore mining from Perkoa is anticipated in mid-2007.
The company's estimated 2008 production gross revenue from the mining project is 212 mln usd at current zinc prices and the in ground metal value is over 3.3 bln usd.
The company said development on site at Perkoa has progressed, with excavation work commencing on the box cut for the decline development expected to start in late November 2006.
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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