Asian Mineral Resources’ (AMR) 90%-owned subsidiary Ban Phuc Nickel Mines LLC is in advanced negotiations with Lien Viet Post Bank (LVBP) for a US$20 million project financing loan for the Ban Phuc Nickel Project. Pending final approval, the bank has agreed to extend an initial US$11 million loan, so pre-production work can continue.
During a customary credit approval process, Asian Mineral Resources’ company officials said the initial loan interest will likely rate be 6.5%, and may be repaid by the subsidiary any time.
AMR’s CEO Simon Booth says, “We are excited to be working in partnership with LVPB. AMR’s continued focus on maximizing local Vietnamese content, in all aspects of the project, is an important aspect to ensuring the ongoing success of the project. The successful completion of project financing will position AMR to move from the milestone of first production at the end of June 2013, to sustainable positive cash flow.”
Asian Mineral Resources is developing the Ban Phuc Nickel Project, 160km northwest of Hanoi in Son La Province. In its advanced stages, the project has underground and surface infrastructure near completion and production is slated to begin by the end of June.