Oyu Tolgoi copper-gold project - primary financing advances
The EBRD and the IFC have signed a joint mandate letter with Ivanhoe Mines to advance primary financing for the Oyu Tolgoi project in Mongolia.
The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are considering a two-part package to provide a combined $600 million as primary lenders for a major financing package for the massive Oyu Tolgoi copper-gold project in Mongolia.
Under the terms of a letter signed with Ivanhoe Mines, the EBRD and IFC will also help mobilize an US$2.1 billion from commercial lenders under a "B loan" structure.
In a recent news release, Ivanhoe Mines said it has also received expressions of interest from export credit agencies to provide up to US$500 million in direct project debt financing.
Ivanhoe Chairman Richard Friedland said, "Securing the proposed financing package-and combining it with possible additional subscriptions of more than US$1 billion through our existing agreements with Rio Tinto and the funds from our cash position that are earmarked for project development expenditures-would advance Ivanhoe a long way toward completion of the construction of the Oyu Tolgoi mine."
‘The keen interest that has been expressed by all of the potential lenders that we have consulted gives us confidence that our financing plans are achievable without imposing undue burden or dilution upon our balance sheet, our shareholders and our project partners," said John Macken, Ivanhoe Mines CEO.
With the assistance of Hatch Corporate Finance, Ivanhoe will select two major commercial banks to join EBRD and the IRC in a group of lead arranging banks. The group would jointly structure the debt financing package, with completion targeted for the first quarter of 2011.
The IFC and EBRD financings are subject to detailed due diligence including review of environmental and social studies conducted by the Oyu Tolgoi Project, and approval of their management and boards.
The recently released Oyu Tolgoi Integrated Development Plan (IDP-10) estimated the initial capex required to achieve first production from the open-pit mine on the Southern Oyu Tolgoi deposits is US$4.6 billion.
Copper recovery in the reserve scenario of IDP-10 calls for 25.2 million pounds, while copper recovery in the Life-of-Mine Sensitivity Scenario (which includes resources) calls for 52.5 million pounds of copper production. IDP-10 also suggests a reserve recovery of 1.3 million ounces of gold, and a life-of-mine sensitivity scenario of 2.4 million ounces for Oyu Tolgoi and its various deposits.
Author: Dorothy Kosich
Posted: Monday , 24 May 2010
RENO, NV -
The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are considering a two-part package to provide a combined $600 million as primary lenders for a major financing package for the massive Oyu Tolgoi copper-gold project in Mongolia.
Under the terms of a letter signed with Ivanhoe Mines, the EBRD and IFC will also help mobilize an US$2.1 billion from commercial lenders under a "B loan" structure.
In a recent news release, Ivanhoe Mines said it has also received expressions of interest from export credit agencies to provide up to US$500 million in direct project debt financing.
Ivanhoe Chairman Richard Friedland said, "Securing the proposed financing package-and combining it with possible additional subscriptions of more than US$1 billion through our existing agreements with Rio Tinto and the funds from our cash position that are earmarked for project development expenditures-would advance Ivanhoe a long way toward completion of the construction of the Oyu Tolgoi mine."
‘The keen interest that has been expressed by all of the potential lenders that we have consulted gives us confidence that our financing plans are achievable without imposing undue burden or dilution upon our balance sheet, our shareholders and our project partners," said John Macken, Ivanhoe Mines CEO.
With the assistance of Hatch Corporate Finance, Ivanhoe will select two major commercial banks to join EBRD and the IRC in a group of lead arranging banks. The group would jointly structure the debt financing package, with completion targeted for the first quarter of 2011.
The IFC and EBRD financings are subject to detailed due diligence including review of environmental and social studies conducted by the Oyu Tolgoi Project, and approval of their management and boards.
The recently released Oyu Tolgoi Integrated Development Plan (IDP-10) estimated the initial capex required to achieve first production from the open-pit mine on the Southern Oyu Tolgoi deposits is US$4.6 billion.
Copper recovery in the reserve scenario of IDP-10 calls for 25.2 million pounds, while copper recovery in the Life-of-Mine Sensitivity Scenario (which includes resources) calls for 52.5 million pounds of copper production. IDP-10 also suggests a reserve recovery of 1.3 million ounces of gold, and a life-of-mine sensitivity scenario of 2.4 million ounces for Oyu Tolgoi and its various deposits.
Author: Dorothy Kosich
Posted: Monday , 24 May 2010
RENO, NV -
Comments
Post a Comment