Frontier Mining shares up as reveals further funding for Benkala
Frontier Mining (LON:FML) shares rose today as it revealed it had secured further funding for operations at its Benkala copper mine in Kazakhstan.
Under existing loan deals, Sberbank Kazakhstan has agreed to provide an additional loan and credit facility to the firm worth $6 million dollars, said Frontier.
Sberbank is the largest bank in Russia and the CIS and Frontier entered into its existing loan facility of $29 million with them on January 12 this year.
Frontier CEO Erlan Sagadiev said: “The new facilities reflect the progress achieved at Benkala to date.
“With the successful commencement of copper cathode production this month, Sberbank have agreed to finance the expansion of the plant from 7,000 to 10,000 tonnes per annum.
“We now have the finance in place to continue at full pace which is a good external vote of confidence in Frontier and its KazCopper management team.”
The company produced its first copper sheets on Saturday (August 11) at the solvent extraction-electro winning (SX-EW) plant at Benkala.
The aim is to now increase the daily production rate up to the 7,000 tonnes of copper capacity for this year, then hopefully increase this capacity to 10,000 in 2013 and up to 20,000 tonnes after that.
The new funding consists of two parts – a $5 million increase in the investment loan and a $1 million increase in the working capital credit facility, while all other conditions of the existing loan arrangement remain the same.
As at 8.50am, Frontier share stood up 0.60 per cent, at 4.23 pence.