BMR Group secures funding for Kabwe development

(ShareCast News) - BMR Group confirmed on Friday that it and its wholly owned subsidiary Enviro Mining Limited have entered into the anticipated project construction and trade finance facility for up to $5.2m, with private South African group African Compass International.The AIM-traded firm said the facility provides that ACI will make available up to US$4.2 million to EML for use in connection with the plant and materials processed at Kabwe, upon achievement of various milestones, through to commissioning of the plant and proof of saleable product.Additionally, the facility provides for the drawdown of $1.0m to satisfy the consideration payable to exercise the option agreement with Bushbuck Resources for the acquisition of its Star Zinc Large Scale Prospecting Licence 19653-HQ-LPL in Zambia, as announced on 16 August.Drawdowns under the facility, which is interest free but involves an arrangement fee of $0.1m, are to be repaid within 12 months of the final milestone, set off against product revenues due from ACI, or, at EML's election, in cash."This facility represents a defining moment for the company as the financing has underpinned our planned cost of the plant at Kabwe," said BMR chairman Alex Borrelli."We are pleased to have delivered this facility for the benefit of our shareholders who have supported the management team in our endeavours for processing the Kabwe tailings."Borelli said the facility also provides the firm with the funding necessary for exercising the option agreement on the Star Zinc licence."Our continuing progress on our schedule of works at Kabwe remains in line for completing the plant construction for commissioning in 2017."