Finders Resources has entered into a number of agreements with Daewoo International Corporation which are intended to provide US$45 million of funding for Finders’ Wetar Copper Project.
The funding is project level equity and loans to expand the Wetar plant from its current annual capacity of 3000 tonnes of copper cathode to 28,000 tonnes. The expanded plant is expected to be commissioned in the second half of 2015.
Under the agreements, Daewoo will subscribe for shares in and provide loans to Finders’ wholly-owned Indonesian subsidiary, PT Batutua Tembaga Raya (BTR). Daewoo will acquire an economic interest of 24.1% in BTR in exchange for US$45 million project funding.
Daewoo’s economic interest will commence at 24.1% but may vary between 24.1% and 27% if certain defined Indonesian taxation, regulatory or royalty changes occur in the future. Daewoo will be entitled to appoint two representatives to BTR’s Board of Directors and one representative to its Board of Commissioners.
The agreements include an offtake agreement in relation to 20% of cathode production from the project. On closing, Finders will have secured offtake partners for 100% of its cathode production.
BTR will also enter into a Procurement Agreement with Daewoo under which BTR will be able to access Daewoo’s procurement and technical expertise for the benefit of the project. BTR is already working with Daewoo in relation to a number of opportunities.
Finders’ managing director Barry Cahill says, “We are looking forward to working with our new partner Daewoo as we bring the Wetar Copper Project into commercial production. We believe the current project is just the beginning of the opportunities for Daewoo and Finders to work together.”
Daewoo’s senior vice president Kyu-Jin Jung says, “We are very pleased to participate in the project and to work together with Finders to make this project successful. The project, we believe, is a stepping stone for the long and prosperous partnership between Finders and Daewoo.”
The project, on Wetar Island, is a high-grade, open pit with a 8.9 million tonne @ 2.4% copper reserve and a 1:1 strip ratio. Finders has an operational plant capable of annually producing 3000 tonnes of copper cathode through sulphide heap leach SX-EW. The company intends to add 25,000 tonnes to copper cathode capacity via the refurbishment and re-assembly of the former Whim Creek plant and the building of associated leach pads and infrastructure.
Finders also has a highly prospective, advanced gold-silver exploration project in Sumatra.
Daewoo, a member of the POSCO Family, is a leading international trader, investor and project organizer in Korea. It has 117 overseas units in 58 countries. Daewoo is actively participating in the natural resources sector, with investments in dozens of global projects including Block A-1/A-3 gas field in Myanmar, Ambatovy nickel project in Madagascar and Narrabri Coal in Australia. www.findersresources.com