Cedrus International Ltd has joined with Platinum Partners to provide a non-binding term sheet to Cokal Ltd in relation to a US$110 million project finance facility for the BBM coal project. Platinum and Cedrus will fund the project equally.
The Cedrus International Limited (‘CIL’) team manages a global portfolio of proprietary direct investments in China, South East and Central Asia, Australia and Africa, primarily in the natural resources, commodities, cleantech and life sciences sectors.
Commenting on the facility, Cokal’s chairman and CEO Peter Lynch says, “We welcome the participation of Cedrus, who together with Platinum Partners will provide Cokal with strong financial support from two global financing partners. The addition of Cedrus with their strong global and regional presence provides further support for Cokal’s view of the merits of the BBM project and confidence in Indonesian mining opportunities generally.
The confirmation of the Platinum/Cedrus financing is a significant achievement for the company and, when completed, will put us on target to start construction promptly after receiving the final forestry approval which is expected this quarter.”
The total amount of the facility is US$110 million. This includes rolling the Platinum Bridging loan into the facility once it is in place.
The facility will be sufficient to fund construction and commissioning of Cokal’s 2 million tonne/annum Bumi Barito Mineral (BBM) Project and Cokal’s general working capital requirements during this phase of development.
In addition to the above and as part of a 50:50 river barging joint venture arrangement with local Indonesian shipping company Meratus Advance Maritime, which will be funded by equity from the joint venture participants and senior debt, Cokal plans to raise bank financing for its 50% share of the barging fleet senior debt valued at approximately US$15 million. The facility will provide the equity funding for Cokal’s share of the barging JV.