Name and Location
Tschudi copper project, Namibia.

Client
Weatherly International.

Project Description
A bankable feasibility study (BFS) on the Tschudi project has indicated a robust project. Tschudi has mineral resources of 50.1-million tonnes at 0.86% copper and a reserve of 22.7-million tonnes at 0.95% copper.

The BFS envisages an openpit mine and an estimated mining rate of 17-million tonnes a year.

The ore will be processed using solvent extraction electrowinning at a rate of 2-million to 2.6-million tonnes a year of ore.

The mine is expected to produce 17 000 t/y over an 11-year mine life.

Value
Initial capital required to develop the project is estimated at $81-million.

Duration
Mining at Tschudi is expected to start in the third quarter of 2014.

Latest Developments
Weatherly has named Basil Read subsidiary and construction firm Basil Read Namibia, processing specialists B & E International North and engineering consultants Logiman as its key contractors for the construction of the Tschudi copper project.

This follows the company’s September 19 announcement that it had finalised a $91-million loan facility with mining financier Orion Mine Finance, which will enable Weatherly to fully fund to production the 17-million-tonne-a-year project.

Basil Read Nambia will be responsible for the mining operations, while B & E International (North) has been awarded the crushing, agglomeration and stacking contract.

The agreement with Logiman is for a fixed-price engineering, procurement and construction (EPC) contract, valued at R641-million.

The company is also close to finalising a power supply agreement with Namibian utility NamPower and a long-term acid supply agreement with Protea Chemicals, which will be executed post-drawdown of the recently concluded loan.

Further, Weatherly has finalised a $91-million loan facility with mining financier Orion Mine Finance, which will enable the copper-focused mining company to fully fund to production the 17-million-tonne-a-year Tschudi project.

This follows an amendment of the loan from the original term sheet that was signed in December to a more favourable repayment term of six and a half years, which came at a cost of a 1% increase in the interest rate payable.

The facility comprises a secured loan of $80-million, a project cost overrun facility of an additional $8-million and $3-million to assume the existing Louis Dreyfus loan, which has been rescheduled to expire at the end of 2014.

The loan repayment is expected to be covered from cash flow from Tschudi, with no expected demands on cash flow from Weatherly's Central Operations.

In addition to the loan, Orion wouill, on an exclusive basis, buy 100% of the project's copper cathode production based on London Metals Exchange and Commodity Exchange market prices for the 11-year life of the mine.

Meanwhile, both parties have ensured that all major development contracts for Tschudi met the lender's requirements.

Key Contracts and Suppliers
Basil Read Namibia (mining operations); B & E International North (crushing, agglomeration and stacking contract) and Logiman (EPC).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Weatherly International, tel +44 207 917 2989, fax +44 207 439 0262 or email info@weatherlyplc.com.
Basil Read, tel +27 21 946 4664 or fax +27 21 946 4669.
B & E International North, tel +264 63 233 229.
Logiman, tel +27 11 011 9260 or email info@logiman.co.za.