HomeBase MetalsTeal secures US$85 million loan

Teal secures US$85 million loan

TEAL’s Konkola
North Shaft in
Johannesburg, South Africa — MININGREVIEW.COM — 17 July 2008 – Listed on the Toronto and Johannesburg Stock Exchanges, TEAL Exploration and Mining Incorporated – a growth-oriented mineral development and exploration company building a solid track record in southern and central Africa – has been awarded an US$85 million (R680 million) loan facility by a consortium of two acknowledged lenders to help fund its exploration activities in Central and Southern Africa .

A statement issued here by TEAL revealed that the facility – granted by Standard Chartered Bank and Standard Finance (Isle of Man) Limited, part of the Standard Bank Group – would be available from 18 July 2008 until 31 August 2009. It had been guaranteed by African Rainbow Minerals Limited, TEAL’s major shareholder.

The statement added that the facility would be used to settle an existing US$50 million (R400 million) loan, and to continue funding exploration work, general corporate expenditure and working capital requirements.

The balance of US$35 million (R280 million) would be used to fund various activities, among them:

  • The Lupoto copper project in the Democratic Republic of Congo (DRC), where small scale mining is underway;
  • Continuing exploration drilling to expand the current resource base at Lupoto, which will ultimately be used in the feasibility study aimed at assessing a mining operation capable of producing around 40 000 tonnes a year of copper;
  • Finalising the feasibility study on the Konkola North copper project in Zambia, where TEAL intends using an existing shaft and other infrastructure to produce 25 000 tonnes a year of copper;
  • Continuation of the large exploration drilling campaign that is underway within Area “A” on the Konkola North property; and
  • Progressing various other exploration and evaluation projects on TEAL properties in the DRC, Namibia, Zambia and Mozambique.