Fiji-focused iron-ore developer Amex Resources has executed a $80-million funding agreement to fund the development of its Mba Delta ironsands project.
The facility comprise a $30-million loan and an underwritten agreement for a further $50-million during the 18-month construction period of the Mba Delta project.
The facility was engaged primarily to fund a plant and design-build 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 10-million fully paid ordinary shares and 10-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.
Delta project has an indicated resource of some 220-million tonnes, grading 10.9% iron, and construction of a sole-use wharf, enclosed stockpile shed and export facility for magnetite concentrate has already been approved for Amex’s port site.