Amex raises $80m for Fiji project
PERTH (miningweekly.com) – Fiji-focused iron-ore developer Amex Resources has executed a $80-million funding agreement to fund the development of its Mba Delta iron sand project.
The facility comprised a $30-million loan and an underwritten agreement for a further $50-million during the 18-month construction period of Mba Delta, the company explained on Thursday.
The facility was engaged primarily to fund a plant and design-build Fédération Internationale Des Ingénieurs-Conseils (FIDIC) contract, which Amex hoped to finalise shortly and sign in October.
The $30-million loan would be drawn-down following the signing of the FIDIC contract, at an interest rate of 18% a year. The loan would have a 12-month term, with a further 12-month option at Amex’s discretion.
Interest for the initial term would be paid upfront and, in addition, Amex would issue ten-million fully paid ordinary shares and ten-million unlisted options at an exercise price of 80c each for a three-year term.
The underwritten agreement would have a two-year term and an interest rate of 18% a year and, should alternative finance be sourced by Amex during the term, no break fee would be payable.
Mba Delta had an indicated resource of some 220-million tonnes, grading at 10.9% iron, while the construction of a sole-use wharf, enclosed stockpile shed and export facility for magnetite concentrate has already been approved for Amex’s port site.
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