One of our great mining clients have just now achieved a major milestone in the development of the Gold Ridge project. During these well publisiced difficult times for resource companies seeking financing the team at ASG have made an important announcement regarding a newly signed Mandate Letter from the International Finance Corporation (”IFC”). With the IFC being a member of the World Bank Group this announcment clearly demonstrates the socio-economic robustness of the project which the team at Australian Solomons Gold have spent several years pulling together. We have been working with the project team and senior management over the past two years and have seen them triumph over a range of issues to be expected when developing a project in what is widely regarded as a challenging environment. Well done guys!
Here is more information about ASG, IFC and the recent announcement.
ASG is developing the Gold Ridge Project, a former producing mine, located on Guadalcanal in the Solomon Islands. The mine operated from August 1998 to June 2000 and produced approximately 210,000oz gold during this period. ASG acquired the project in May 2005 and has completed a Feasibility Study to redevelop the Gold Ridge Project which is expected to commence operations during 2010.
Australian Solomons Gold Limited (”ASG” or the “Company”) today [28/4/09] announced it had signed a Mandate Letter with the International Finance Corporation (IFC), a member of the World Bank Group. Pursuant to the Mandate Letter the IFC is preparing to invest US$30 million to assist the financing required to redevelop the Gold Ridge Project, located on the island of Guadalcanal in the Solomon Islands. The proposed investment remains subject to completion of a public disclosure period of 60 days, further documentation, and IFC Board approval at the completion of the public disclosure process. IFC has already advanced its formal appraisal of the Gold Ridge Project and completed a site visit in March 2009 and as a result are close to concluding arrangements with the Company to commence the public disclosure period. The proposed IFC investment is expected to comprise an equity investment of US$5 million and a project debt facility of US$25 million. IFC and ASG are continuing discussions and working with a number of other development agencies and expect to obtain additional commitments to increase the availability of project debt. The Chairman of ASG, Stephen Everett, noted “We welcome the formal involvement of the IFC to assist in the redevelopment of Gold Ridge which will greatly enhance the economic activity in the Solomon Islands, and reward all stakeholders in this much awaited redevelopment of the local mining industry there”.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC’s mining division provides debt, equity and mezzanine finance for mining projects in emerging markets, from early exploration through feasibility, project development and corporate financing. IFC new investments totalled $16.2
The actual press release can be found on the companies webpage here.