http://www.adelaidenow.com.au/business/western-desert-resources-f...

http://www.adelaidenow.com.au/business/western-desert-resources-full-steam-ahead-on-iron-ore-project-after-macquarie-bank-comes-on-board/story-fni6uma6-1226713242958


Western Desert Resources full steam ahead on iron ore project after Macquarie Bank comes on board

WESTERN Desert resources will start exporting iron ore within 90 days after Macquarie Bank came on board to finance its Roper Bar project in the Northern Territory.

The company would not reveal the size of the funding package but earlier this year said it was after about $125 million.

The company raised $17.4 million in July, placing 31.6 million shares was to sophisticated and institutional investors at 55c per share.

Those investors are already well in the money, with Western Desert shares currently trading at 76.5c, up 4.5c today.

company chairman Rick Allert said there was a lot of interest in the debt financing, which was a vote of confidence in the project.

"This debt finance agreement with Macquarie Bank is a vital step in our drive to become a new Australian iron ore exporter in 2013,'' mr Allert said.

"We have been pleased with the interest and support shown for our project from the major banks in Australia which has led to this important outcome."

managing director Norm Gardner said it was a competitive financing process.

"We have accepted one of the offers, with settlement due this month and which will fund the completion of Roper Bar construction to development stage through to production.

"This facility - plus the facility available to us from our offtake partner, Noble - means Western Desert is fully funded for all of our requirements.

"We expect the first shipment of our product in less than 90 days. Importantly, we also remain on budget for completion of construction,"

The financing agreement follows Western Desert signing Noble Resources International as an offtake partner for the three million tonne per year, direct shipping ore project.

The project has a resource of 611 million tonnes of ore of various grades, including 30.8 million tonnes of direct shipping ore at a grade of 59 per cent iron.