Tiberon Minerals closes US$10m loan facility

Tiberon Minerals Ltd (TSX:TBR) has successfully closed the previously announced US$10 million loan facility with WestLB AG. The proceeds will be used to advance the development of Tiberon’s 77.5%-owned Nui Phao tungsten/fluorspar deposit in Vietnam.
The final terms of the loan facility are comparable to those of transactions similar in nature. Funds will be available for drawdown for a period of six-months from closing, with the maturity date not to exceed twelve months from the closing date.
Tiberon has the option to prepay any funds drawn on the facility by providing WestLB AG with notice. The facility is secured through assignment of Tiberon’s 77.5% interest in the Nuiphaovica Joint Venture Company. During negotiations, Tiberon and WestLB AG agreed to eliminate the original convertible element of the loan facility.
The facility will act as a bridge financing through completion of the final feasibility study and finalisation of offtake agreements for the principal commodities to be produced by the Nui Phao mine. Tiberon intends to repay any funds drawn on the loan facility through the issuance of equity to support Tiberon’s prorata share of its equity requirement for the project financing of the Nui Phao mine.
WestLB AG and Fortis Bank S.A./N.V. were appointed in August 2004 as exclusive structuring banks and lead arrangers for the debt financing of Nui Phao.

 

Category: ResourceAsia