Finders secures funding for Wetar copper project

ASX-listed miner Finders Resources Limited said that two of its major shareholders Taurus Funds Management and Resource Capital Funds (RCF) have agreed to provide a loan of up to US$8 million to Finders.

It said the funds will be used for deposits and progress payments on Marine Fuel Oil (MFO) generators, the transportation and import of the Whim Creek SX/EW plant from Australia and for general working capital purposes.

Finders has signed a contract for the purchase of 6 (six) second-hand refurbished generators from Royce Power Engineering Ltd representing a total generating capacity of 19.7 megawatt. Use of MFO generators was a key component of the Bankable Feasibility Study.

The generators offer a significant operating cost saving (around 15 to 20 percent) compared to high speed diesel due to lower fuel price and greater efficiency. The plant has been conservatively designed to provide significant operational redundancy and is capable of generating sufficient power to maximise cathode plating capacity as long as at least 4 of the 6 generators are operational.

The Whim Creek SX/EW plant was formerly used at the Whim Creek mine in Western Australia and Girilambone in NSW. The plant has a nameplate capacity of 18,000 tons per annum of copper cathode and was purchased by Finders from Straits Resources in 2009.

The plant is currently containerised at Port Hedland and Finders has received all necessary import approvals from the Indonesian government, the company said.

Finders said an additional project finance funding package of $138 million is currently being arranged with Credit Suisse, Standard Bank and Barclays. The banks have received all external consultant reports necessary for their due diligence. The banks are expected to seek credit committee approval in November. (romel)