EMERGING copper producer Finders Resources has finalised a US$210 million funding package to expand production at its high grade Wetar copper project in Indonesia, from 3000 tonnes per annum to 28,000tpa.
A syndicate of banks will provide US$165 million in senior loan facilities, with leading international trading house Daewoo International Corporation investing an additional US$45 million in project level equity.
Finders managing director Barry Cahill said Daewoo and the syndicate of banks were sophisticated global resource project financiers that had conducted extensive project due diligence.
“The support of these experienced project financiers is an extremely pleasing endorsement of the Wetar copper project,” he said.
Finders, which only began production from Wetar on 31 March this year, reported that it expected to begin construction of the project expansion works in June. The company intended to add 25,000tpa to copper cathode capacity via the refurbishment and reassembly of the former Whim Creek plant and the construction of associated leach pads and infrastructure.
Production from the expanded plant is scheduled to begin in the second half of 2015. Daewoo – a member of the POSCO group of companies – would invest US$45 million for between 24 per cent and 27 per cent of
Finders’ Indonesian subsidiary PT Batutua Tembaga Raya, as part of a broader strategic partnership between Daewoo and Finders.
“Daewoo and Finders are also exploring other opportunities to partner in relation to the Wetar copper project, including technical assistance and procurement,” Finders said in a statement.“Longer term, the companies may look for other projects to develop together.”