From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Wed Oct 29 2008 - 17:59:43 EST
Nevsun secures $89m for Eritrea project from SA's IDC
By: Liezel Hill
Published on 30th October 2008
TORONTO (miningweekly.com) - South African development finance
institution, the Industrial Development Corporation (IDC) will put up
$89-million in debt funding for the development of Nevsun's Bisha gold
project, in Eritrea, the Vancouver-based firm announced on Thursday.
The IDC, which has been appointed lead banker for the $250-million
project, has approved an $89-million limited recourse line of senior and
subordinated debt for Bisha.
A number of other potential lenders have also submitted indicated terms
for the remaining funding needed for the project, and the proposals are
currently being evaluated.
The Bisha project will produce an average of 431 000 oz/y of gold and
702 000 oz/y of silver in the first two years of production, and copper
and zinc output will begin in years three and six respectively.
If all goes to plan, targeted commissioning will get under way in the
first quarter of 2010, with first production scheduled for the second
quarter of the same year, Nevsun said.
The company was receiving "strong support" from the government of
Eritrea, which also continued to fund its share of expenditures.
Nevsun was ordered by the Eritrean government to halt exploration at
Bisha in 2004 and then allowed to resume operations in the country in
early 2005, after agreeing to allow the government to buy a 30% interest
in the project, on top of the free 10% interest it receives according to
the country's law.
Editor: Liezel Hill
http://www.miningweekly.com/article.php?a_id=146490
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