Tiberon Minerals Vietnam operating entity, Nui Phao Mining Joint Venture Company has had financing arrangements of up to US$210 million and cost overrun facility of up to US$14 million approved by Bayerische Hypo-und Vereinsbank AG (HVB), Caterpillar Financial SARL (Caterpillar), Export Development Canada (EDC), Fortis Bank SA/NV (Fortis) and Standard Chartered Bank (SCB).

Tiberon Minerals is poised to become the world's largest primary tungsten producer and a major producer of acid-grade fluorspar, as well as bismuth, copper and gold through development of its Nui Phao property in Vietnam .

Nui Phao contains over 55 million tonnes of proven and probable reserves (25.1 million tonnes proven, 30.6 million tonnes probable) for an estimated mine life in excess of 16 years, making it one of the largest tungsten-fluorspar deposits located outside China.

The commercial facility represents 70% of the direct project cost estimate of US$230 million, capitalized interest during construction, startup costs, financing fees and a cost escalation allowance at the Lead Arrangers' request.

The remaining 30% will be funded by Tiberon and each of its joint venture partners on a pro-rata basis.

The commercial facility consists of two tranches which will both be fully underwritten. The first tranche is for up to US$180 million and will have a 10 ½ year term from initial drawdown and the second tranche is for up to US$30 million and will have an 11 ½ year term.

Financial close is subject to completion of final loan documentation which is expected to be completed before the end of the year, and initial drawdown is contingent upon satisfying certain conditions precedent normally associated with a facility of this type.

Repayment of the commercial facility will begin following completion of construction and initial startup. Both facilities are secured against the Nui Phao Mine and will be guaranteed by Nuiphaovica and Tiberon until completion is achieved.

The cost overrun facility of up to US$14 million will be drawn down on an equal basis with contingent equity, will be held in escrow, to fund any cost overruns that could occur during development of the Nui Phao mine.

Both the commercial facility and cost overrun facility will be administered by Fortis as documentation and political risk mitigation agent, HVB as technical agent, SCB as offtake and modeling agent, EDC as environment and resettlement agent and Caterpillar as insurance agent.

Tiberon finance vice president and chief finance officer Walter Henry says, "The mandated lead arrangers have previously worked in collaboration to support projects for several major international mining companies.

"Given the fact that they have partnered with Tiberon in developing this world-class tungsten-fluorspar deposit, is validation of the quality of the project and is a vote of confidence in Tiberon's management and development plans for Nui Phao."

In addition, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank, and Export Development Canada is currently working toward finalizing a proposal with respect to providing political risk insurance up to the level required by the Lead Arrangers.

Tiberon Minerals president and CEO Mario Caron says, "Throughout the past several months, Tiberon has achieved both financial and offtake agreements with organizations that are leaders in their respective fields.

"Furthermore, global trends within tungsten and fluorspar markets have remained firm despite an overall commodity price pullback - reflecting well upon the agreements struck between Tiberon and its partners."