Iron ore miner Gindalbie Metals Ltd
(ASX:GBG) says it has signed a mandate letter and term sheet for a US$1.2 billion loan facility for the company’s Karara iron ore project in Western Australia.
The 12 year Karara project loan facility is being provided by China Development Bank and Bank of China, with Gindalbie saying both have shown enormous support and enthusiasm for the project.
The conditions of the facility agreement and security documentation for the loan are currently being negotiated to complete the project debt arrangements.
Gindalbie says this is expected to occur within a timeframe to meet the first required debt drawdown by June 30, 2010.
Managing director Garret Dixon says for Gindalbie the signing of the mandate letter and term sheet means the company is well on the way to being an iron ore producer next year and part of a joint venture that will generate annual revenue of around $1 billion at start up production levels.
The Karara iron ore project in Western Australia is a 50/50 joint venture between Gindalbie Metals and Angang Group International Trade Corporation, or Ansteel.
The miner says the project has the potential to produce in excess of 30 million tonnes a year for 30 years.
Gindalbie Metals fiscal 09 profit came to $26.22 million.
