Gindalbie Acquires China Funds for Karara Project

Iron ore explorer Gindalbie Metals (ASX:GBG) has signed up more funds from China's Ansteel for its Western Australian (WA) project at an official ceremony in Beijing yesterday. An increase of US$336 million to an existing US$1.2 billion facility was acquired to support Gindalbie's Karara Project as well as US$300 million in bank guarantees for securing rail upgrade deals.

Gindalbie announced last month that projects costs are expected to increase 200 km east of Geraldton. The project cost of the Gindalbie-Ansteel deal was also flagged to increase to around $2.7 billion, or 30 percent. A banking syndicate led by China Development Bank and Bank of China were tapped as the probable providers for the increased loan facility, said Gindalbie yesterday.

Last month, Gindalbie announced that Newmont Mining senior vice-president Tim Netscher was to take up chief executive Garrett Dixon's place. "The Karara Project is now almost in the home stretch following the recent commencement of hematite exports and the advanced stage of the magnetite development," said Netscher.

"The increased project loan facility will support the previously announced $430m working capital requirements for the Karara Project."