Xceed Resources: Moabsvelden Project Finance Secured
(firmenpresse) - Xceed Resources: Moabsvelden Project Finance Secured
12 March 2013
Key Points:
•The Company has received and accepted an offer of project development finance from Standard Bank of South Africa Limited, South Africa’s largest financial institution.
•The financing offer has been approved by the credit committee of Standard Bank and is subject only to standard conditions precedent such as permitting and off-take commitments.
•The development finance facility provides for 67% of the expected project development cost.
•This facility, together with the previously announced investment by Thebe Mining Resources, will, when completed, provide more than 90% of the funding required for the construction and commissioning of the Moabsvelden project.
Xceed Resources Limited (‘Xceed’ or ‘Company’) is pleased to announce that it has received, and accepted, a fully approved offer of project development finance from Standard Bank in respect of its Moabsvelden thermal coal project.
The facilities provided by Standard Bank are based in South African Rand. All project development and operating costs are Rand based as are the expected project revenues. The current exchange rate is approximately R9.2 to $1.
The facilities are summarized below:
FacilityPrincipalRolled up InterestTotalTenor
Project DevelopmentR179 million / ($19.5 million)R 24 million / ($ 2.6 million)R 203 million/ ($ 22.1 million)5 years from drawdown
Cost OverrunR 15 million / ($ 1.6 million)R2 million / ($ 0.2 million)R 17 million / ($ 1.8 million)3 years from drawdown
The estimated project development cost for the Moabsvelden project is R268 million / A$ 29.1 million, inclusive of contingencies and EPCM costs. Accordingly, the Standard Bank project development facility of R179 million represents 67% of the estimated development cost.
Receipt of this credit committee approved offer of project development finance satisfies one of three conditions precedent covering the investment into the Moabsvelden project company of R 65 million / A$ 7 million by Thebe Mining Resources (‘Thebe’). The remaining two conditions precedent are the granting of a mining right by the Minister of Mines and the approval of the Thebe investment by the Minister in terms of Section 11 of the Mineral and Petroleum Resources Development Act (2002). The Company has been advised that its application for a mining right has progressed from the regional office to the national office of the Department of Mineral Resources in Pretoria, where it is now awaiting the consent of the Minister.
The Thebe investment funds, which are being held in an escrow account pending the satisfaction of the above conditions, will, together with Standard Bank’s project development facility, provide for R244 million (91%) of the estimated Moabsvelden development costs leaving the balance of R24 million / A$ 2.6 million plus working capital to be secured from other sources.
Ian Culbert, Managing Director of Xceed, commented ‘It is gratifying that two highly regarded institutions likeStandard Bank and Thebe, following their own exhaustive due diligence processes, have decided to fund the development of Moabsvelden. It is a testament to the quality and simplicity of the project and affirms the Directors view that Moabsvelden is an excellent platform from which to grow the Company.”
For further information regarding the Company, please contact the Company on +61 8 9226 0329 or refer to www.xceedresources.com.au
For and on behalf of the Board of
Xceed Resources Limited
Ian Culbert
Managing Director
Xceed Resources Limited is an Australian based public company engaged in the acquisition of mineral projects in Southern Africa. The Company’s primary focus is the development of coal projects located within South Africa’s premier coal fields, which are supported by established infrastructure and are readily capable of reaching their markets.
The Company’s first project is the Moabsvelden thermal coal project situated in the Witbank coal field. Subject to regulatory approval, Moabsvelden is expected to have a mine life in excess of 14 years with the potential to produce export quality as well as domestic quality thermal coal from an open-cast, low strip mine.
Leseranfragen:
Xceed Resources Ltd.
Level 9, 105 St Georges Terrace
PERTH WA 6000
Tel.: +61 (08) 9226 0329
Fax: (08) 9226 0327
E-Mail: info(at)xceedresources.com.au
Datum: 12.03.2013 - 14:12 Uhr
Sprache: Deutsch
News-ID 238482
Anzahl Zeichen: 4670
contact information:
Town:
Wien
Kategorie:
Business News
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