LONDON (Alliance News) - EMED Mining Public Ltd Tuesday said it has agreed non-binding terms with several parties, including its three largest shareholders, about an equity financing structure to fund the development of the Rio Tinto copper project with the aim of entering into binding terms in May.
EMED said it remains in discussions with its three largest shareholders, Trafigura Beheer BV, Orion Mine Finance (Master) Fund I LP and Hong Kong Xiangguang International Holdings Ltd, an affiliate of Yanggu Xiangguang Copper Co Ltd, about a long-term financing package for the project.
"We continue to progress our discussions with a view to concluding the financing structure that will enable the company to complete phase one of our development and production programme, following which the focus will be on expansion plans," said Chief Executive Alberto Lavandeira.
"The company has agreed non-binding terms with regards to an equity financing structure with several parties principally including the strategic investors (the three shareholders) and intends to enter into binding documentation by mid-May 2015," said EMED.
In addition, EMED said it continues to monitor expenditures, and expects that its working capital position is sufficient to allow it time to enter into binding definitive documentation for the financing.
"The company has a number of potential sources of short term financing for working capital purposes which the board continues to evaluate should this be needed," said EMED.
"We remain on track to commence production as planned and look forward to updating the market as we work towards restarting operations at this historic project," said Lavandeira.
EMED shares were up 2.5% to 5.12 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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