Financing of A$15.8 Million for Wetar Copper Pilot Plant and Working Capital
Wednesday, December 12th, 2007
Finders Resources Limited is pleased to announce that it has entered into agreements to raise a total of approximately A$15.8 million before financing charges, to be applied to construction of a heap leach SX-EW pilot plant for the Wetar Copper Project and additional working capital.
Production from the pilot plant is expected to be around 5 tonnes per day from July 2008, as a precursor to full scale production of 20-25,000 tpa of cathode copper from mid 2009. The current Wetar resource base of 248,000 tonnes of contained copper (9.8Mt @ 2.5% Cu) in two low strip ratio deposits supports an expected mine life of over 8 years at this production rate. However, Finders believes there is excellent exploration potential on Wetar Island to delineate further copper rich massive sulphide deposits and significantly expand the current resource base and mine life.
The financing is in the form of a placement of 4 million shares at A$1.10 per share through Southern Cross Equities, and an agreement with Tennant Metals Pty Ltd (Tennant Metals), subject to formal documentation, whereby Tennant Metals and its associated shareholder, Meridian International Capital Limited (Meridian), will subscribe for US$5 million in shares at A$1.10 per share, and will also provide a secured loan facility of US$5 million, in return for the off-take rights for all copper production from the Wetar pilot plant, plus off-take rights for 10% of copper production from the planned full scale mining operation at Wetar.
Based on the current US$:A$ exchange rate of around 0.88, a total of around 9.16 million shares will be issued increasing Finders total issued share capital to approximately 74.8 million shares. The expected 5.16 million shares to be issued to Tennant Metals and Meridian will, when added to their existing interests, give them a holding of approximately 9.5% in Findersâ€™ expanded share capital base. Finders will apply for the new shares to be admitted to trading on both the ASX and the AIM market.
Finders is the operator of the Wetar Copper and Ojolali Gold-Silver Projects in Indonesia and holds an investment in Geopacific Resources NL, an ASX-listed company.
Tennant Metals is an Australian domiciled, privately owned metals trading company with a long history in Australian and international mining and trading, tracing back to 1966. It has offices in Sydney, China and Taiwan, and agency arrangements in South Africa, Turkey, Vietnam, Thailand, USA, Chile, Peru and India.
Finders Executive Chairman Dr Russell Fountain said: â€œThis financing represents a significant milestone for the Company in its move to producer status. The funds will enable us to complete fast track development of the Wetar Copper Project pilot plant, which will produce cash flows for the company from mid 2008, and also allow us to continue an aggressive exploration program at Ojolali, aimed at defining a start-up oxide gold resource.
Finders directors believe that the association with Tennant Metals will bring significant benefits to the company as we move to producer status and also welcome the continued strong support of Southern Cross Equities in this fund raising.â€
For further information visit: www.findersresources.com