The Asia Miner

JUL-SEP 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

Issue link:

Contents of this Issue


Page 25 of 55

the asia miner • volume 15 • issue 3 24 REGIONAL FOCUS: South Pacific Lion One Metals has secured a US$40 million debt facility with Chinese companies Sinosteel Equipment & Engineering and Baiyin Internaঞonal Investment. The term sheet incorporates an EPC and gold doré off- take financing facility for mine development and construcঞon of the processing plant for the Company's 100 per cent owned and fully permied Tuvatu Gold Project located near the Nadi Internaঞonal Airport in the Republic of Fiji. Lion One intends to engage Sinosteel as the project EPC Contractor and Baiyin as the doré off-taker and be provided with a US$40 million facility. Closing of the facility is subject to saঞsfactory due diligence, board approvals, and final documentaঞon, with closing expected to take place in the third quarter of 2018. Lion One will have the opঞon, subject to mutual agreement, of increasing the principal of the facility by an addiঞonal $10 million with the same interest rate, repayment schedule, security, and pro-rata royalty as the Facility. Lion One will also have the right to obtain a new facility of up to $10 million freely, provided it is not secured against the security under the Facility. Walter H. Berukoff, Chairman and CEO of Lion One commented "We are pleased to cooperate with Baiyin and Sinosteel for the long-term financing, which will provide low- cost capital and maximum flexibility in the development of Fiji's next high-grade gold project at Tuvatu." The Tuvatu gold project Lion One secures US$40 million for construction of the Tuvatu Gold Project The Australian Federal Government has decided not to approve Phosphate Resources Limited's exploraঞon program on Christmas Island due to potenঞally significant and unacceptable environmental impacts. The decision follows a rigorous and comprehensive assessment under the Environment Protecon and Biodiversity Conservaon Act 1999, including the consideraঞon of the social and economic benefits of the proposal as well as comments received on the proposed decision from relevant Ministers and from Phosphate Resources. The company has been mining on the Indian Ocean Territory for more than 100 years. According to local media sources, Phosphate Resources has claimed that it needed to clear more crown land to access new deposits for the operaঞons to remain viable. Under the proposed expansion, the company wanted to clear addiঞonal 6.83 hectares of land to undertake exploraঞon drilling in what has been described as a "prisঞne area of the island". Although the proposal was backed by the local shire and populaঞon, the Federal Government maintained that Christmas Island was a unique and irreplaceable environment, being home to many unique and rare plants and animals including the millions of red crabs which migrate to the sea each year to spawn. "Environmental damage on small islands had a far greater impact because of its limited capacity to recover from declines in biodiversity caused by the cumulaঞve effects of land clearing, habitat fragmentaঞon and invasive species compared to large land masses", said the Hon. Josh Frydenberg MP, Minister for the Environment and Energy. "While there has been some mineral extracঞon daঞng back some 100 years, the Government has determined that this parঞcular proposal is likely to have unacceptable impacts on the environment of Christmas Island," commented Mr Frydenberg. No approval for phosphate exploraon on Christmas Island Australian Government refuses Christmas Island phosphate exploration

Articles in this issue

Archives of this issue

view archives of The Asia Miner - JUL-SEP 2018