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Amex Resources Secures US$80M Facility To Develop Fiji Ironsands Project

Amex Resources Secures US$80M Facility To Develop Fiji Ironsands Project
Amex Resources Limited’s Port facility site.
September 26
11:14 2015

Amex Resources has executed a US$80 million (FJ$170 million) funding facility for development of its Mba Delta ironsands project in Fiji.

This will fund a plant and design-build International Federation of Consulting Engineers (FIDIC) Contract that is expected to be finalised and signed next month.

Amex has been negotiating with a highly regarded port infrastructure specialist and leading Chinese construction firm, with previous experience in Fiji and knowledge of the Mba Delta project, to undertake and commence the port construction works.

It is also in discussions with several major international groups regarding supply of the marine fleet required for dredging, processing and barge transportation of the ironsands material.

The company intends to pursue a share placement to provide additional working capital in the near future.

 

Funding Details

The facility comprises a US$30 million (FJ$64 million) loan and an underwriting agreement for a further US$30 million during the 18 month construction period.

After signing the FIDIC contract, the company will drawdown the full US$30 million (FJ$64 million) loan.

This has an 18 per cent per annum interest rate with a 12 month term along with a further 12 month option at Amex’s discretion.

The company will issue 10 million shares and 10,000 unlisted options exercisable at $0.80 for a three year term as upfront payment of the interest for the initial term.

The underwriting agreement has a two-year term and also draws an interest rate of 18 per cent per annum.

 

Mba Delta Ironsands Project

The project is a simple flat lying blanket of fine to coarse magnetite-bearing black sand about 15 kilometres long and up to four kilometres wide at the mouth of the Ba River.

This produces a high-quality and low impurity magnetite product that can be readily extracted at low cost by dredging of unconsolidated sediments with simple magnetic separation recovering the magnetite concentrate.

Following an initial six-month ramp up period, annual production of 750,000 tonnes of magnetite concentrate targeting 58 per cent iron will be sold primarily to steel mills in China.

Feedback: rachnal@fijisun.com.fj

 

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