Orogen Gold Regulatory News (ORE)

4 May 2007 07:01

Aricom PLC04 May 2007 Press Release 4 May 2007 Aricom plc ("Aricom" or "the Group") US$65m Project Finance Facility for Kuranakh Project Aricom plc (AIM: TIO), the Anglo-Russian developer of mineral resources, todayannounces that it has received credit approved commitment letters fromBayerische Hypo- und Vereinsbank AG, Caterpillar Financial (Zurich) and VTB BankEurope plc. These commitment letters are a formal commitment to a projectfinance facility of US$65 million for the Kuranakh project. The financing will provide the remaining funding required for the development ofKuranakh, including construction costs and working capital requirements and areturn of a portion of the initial capital already contributed by Aricom to theproject. Bayerische Hypo- und Vereinsbank AG, Caterpillar Financial (Zurich) and VTB BankEurope plc have in aggregate conditionally committed to providing the financingfacility of US$65 million and Aricom will shortly mandate the Lead Arrangers.This facility completes the financing arrangements for the development ofKuranakh. The key features of the financing facilities include: - Amount of loan: up to US$65 million; - Loan tenor of six years; and - No political risk insurance required. The funding is subject (inter alia) to completion of due diligence and detaileddocumentation. This process is well underway and is expected to be finalisedwithin the first half of 2007. Jay Hambro, Chief Executive Officer commented: "I am delighted that such a well respected group of international financialinstitutions has offered Aricom this project finance facility on what weconsider to be attractive terms. The Kuranakh project construction is continuing as budgeted and scheduled. Theconstruction programme is over 50% complete with all major items of equipmentalready ordered. Initial concentrate production is targeted to commence inDecember 2007" - Ends - For further information:Aricom plcJay Hambro, Chief Executive Tel: +44 (0) 20 7201 8939 www.aricom.plc.ukCanaccord AdamsChris Bowman/Robert Finlay Tel: +44 (0) 20 7050 6500AbchurchCharlie Jack / George Parker Tel: +44 (0) 20 7398 7700 Notes to Editors Aricom plc is a leading developer of Russian metal and mining assets, focusingon iron ore and ilmenite production and delivery. The Company was establishedin September 2003 to develop projects, situated in the north west of the AmurRegion, in Russia's Far East. These projects are set to service the Chinese andRussian commodity market. Aricom currently operates three projects in the Amur region and the adjoiningJewish Autonomous Region. The Company's projects Kuranakh, K&S and Bolshoi Seymhave combined estimated reserves and resources of over one billion tonnes ofIron Ore and Ilmenite ores. The location of the Company's deposits offer asignificant logistical advantage being close to the Trans-Siberian-Express andthe Baikal-Amur Magistral railways. In 2005, 700 million tonnes of iron ore were shipped globally, of that 300million (43%) was shipped to China. It is currently estimated that China is oncourse to have imported 300 million tonnes of ore by the end of 2006 tofacilitate its demand for steel production. In June 2006, Aricom announced aMemorandum of Understanding with China's largest nonferrous metal companyChinalco, to co-operate in the design and development of a Titanium Spongeproduction plant in China. Aricom is headquartered in London, with a highly experienced board of directorscomposed of British and Russian citizens. The company's shares were admitted totrading on the AIM Market in December 2003 and trade under the symbol TIO.L. Forfurther information please visit www.aricom.plc.uk This information is provided by RNS The company news service from the London Stock Exchange