CuDeco Limited
(ASX:CDU) has signed a memorandum of understanding with China state-owned Sinosteel whereby Sinosteel can increase its shareholding in CuDeco.
The deal allows for Sinosteel to complete the electrical installation at the $300 million Rocklands Copper mineral processing facility that CuDeco is building.
Under the MOU, Sinosteel will take full responsibility for the installation of 330km of electrical cable and is the EPC contractor for the already installed power station.
As part of the agreement Sinosteel can choose to take part or all of the installation cost as shares in CuDeco or take an interest free deferred cash payment freeing up cash flow for CuDeco.
CuDeco Limited
(ASX:CDU) reported a net loss of $4.5 million for the 2014 financial year.
