Frontier Mining signs $4m loan with HSBC Bank Kazakhstan
Nov 22. StockMarketWire
Gold and copper explorer and developer Frontier Mining has signed a $4m loan with HSBC Bank Kazakhstan for the Benkala project.
HSBC will provide the facility for a period of three years to KazCopper, Frontier’s 50%-owned joint-venture which manages the Benkala copper development project.
The loan will be issued in two tranches and is solely tied to being used to purchase capital equipment for the Benkala project by KazCopper.
The first tranche has begun to be transferred and the second is dependent on existing mining equipment being collateralised in favour of HSBC, which should be completed in November or early December.
HSBC and Frontier have an indicative agreement that additional funding may be provided to KazCopper for the Benkala project up to a total value of $15m provided that Frontier achieves certain conditions and requirements.
CEO Erlan Sagadiev said: “We are now on a clear path to fully fund Benkala launch, provided we will successfully fulfil the lending requirements of HSBC in the upcoming few months.
“It is a great bank and we are happy to have them as a key partner with Frontier.”