PERTH (miningweekly.com) – Copper developer Tiger Resources was on the hunt for new capital after Nedbank Capital decided not to participate in an $80-million debt financing facility to partly fund the development of the Stage 2 solvent extraction and electrowinning plant at the Kipoi project, in the Democratic Republic of Congo.
Tiger said on Tuesday that it was in discussions with international financial institutions to replace Nedbank, with the new participant expected to join FirstRand Bank as the co-arranger of the term facility.
FirstRand Bank, through its Rand Merchant Bank division, has already received credit approval to provide a A$15-million bridging facility, once standard financing conditions were finalised.
Additionally, Rawbank and BCDC have also offered to extend standby credit lines totalling some A$20-million.
“We are fortunate that in undertaking the original financing tender process, we received competitive offers from a number of major financial institutions who maintained a continued interest in financing the Stage 2 development at Kopoi,” said Tiger MD Brad Marwood.
He noted that this enabled Tiger to replace Nedbank Capital with little or no disruption to the funding timetable.
The Stage 1 heavy media separation plant was in production and expected to process 2.7-million tons of ore grading about 7% copper to produce a total of 113 000 t of copper in concentrate over its 39-month life.
A Stage 2 solvent extraction and electrowinning plant is targeted to come on stream in 2014. It is envisaged that ore from Kipoi Central, Kipoi North, Kilebi and other deposits within the Kipoi project, as well as the nearby Lupoto project, will be processed during the Stage 2 phase.