Amex Signs US$80 Million Funding Agreement for Mba Delta Project in Fiji

Amex Resources (ASX:AXZ) announced that it has executed an US$80 million funding agreement for the development of its Mba Delta iron sand project in Fiji.
As quoted in the press release:

The facility comprises a US$30M loan and an underwriting agreement for a further US$50M during the 18 month construction period. The facility has been engaged primarily to fund a Plant and Design-Build FIDIC Contract (Port Facilities and Marine Fleet), which the Company anticipates will be finalized shortly and signed in October 2015. Throughout the course of this year Amex has disclosed its ongoing negotiations for a new contract, following termination of the earlier arrangement due to wilful non-performance by the previous contractor

The material terms and conditions of the funding facility are as follows:

US$30M loan – after signing of the FIDIC Contract, the Company will drawdown in full the US$30M loan at an interest rate of 18% per annum. The term of the loan is 12 months, with a further 12 month option at Amex’s discretion. Interest for the initial term will be paid upfront and in addition the Company will issue 10,000,000 fully paid ordinary shares and 10,000,000 unlisted options at an exercise price of $0.80 for a three year term.
Underwriting Agreement – US$50 million – the term of the underwriting is two years and the interest rate is 18% per annum. Should alternative finance be sourced by the Company during the term, no break fees will be incurred for the underwriting amount.

Click here to read the full Amex Resources (ASX:AXZ) press release.