Wednesday, September 08, 2004 OXIANA has doubled its debt facility with ANZ to US$140 million, with the funds to be used to complete the Sepon copper project and for working capital.
The company denied there were any problems behind the increased debt.
Oxiana chief financial officer Jeff Sells told MiningNews.net the total Sepon copper project cost was still US$235 million.
"We have set a total project cost of US$235 million and we are not changing that," he said.
"Of the money that we are raising, some will be going towards the construction of the Sepon copper project (US$40 million), some will be used for working capital and some will be used for general corporate purposes."
The company reported a slower quarter in terms of gold production from the Sepon project as a result of mining of lower grade ore from the Nalou and Discovery West pits. It produced 31,259 ounces of gold at a cost of US$286 per ounce.
"The June quarter result has had little or no bearing on the amount we are borrowing," said Sells.
Today's announcement is in contrast to that made in May, when the company announced it had slashed the debt financing component of the copper project to US$70 million. It said at the time that it had decided to increase the equity in the financing ratio after experiencing delays in finalising the debt facility and a stronger gold price had strengthened the company's financial position.
The new US$140 million facility will be repayable over six years with the first repayment scheduled for mid 2006.
The 60,000 tonnes per annum Sepon copper project is 80% complete with first production on schedule for March 2005.
Oxiana shares were trading up marginally at 78c at
OXR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
