logo-loader

Finders Resources secures US$45M from Daewoo

Published: 10:30 15 Aug 2014 AEST

au_indonesia__350_53ed3799a5c33

Finders Resources (ASX:FND) has executed US$45 million worth of funding agreements with South Korea’s Daewoo International Corporation to expand the copper cathode plant at its Wetar Copper Project in Indonesia.

This will increase its production capacity to 28,000 tonnes per annum of copper cathode from the current 3,000tpa. The expanded plant is expected to be commissioned in the second half of 2015.

Notably, the agreement also includes an offtake agreement in relation to 20% of copper cathode production, bringing total offtake secured to 100% of production.

Daewoo will subscribe for shares in Finders’ wholly owned Indonesian subsidiary, PT Batutua Tembaga Raya (BTR). This will give it a 24.1% economic interest in the BTR, which holds the project.

BTR will also enter into a Procurement Agreement with Daewoo under which BTR will be able to access Daewoo’s procurement and technical expertise for the benefit of the project.

Wetar Copper Project

Wetar, located on the north central coast of Wetar Island in the Maluku Province, is a high-grade, open pit with a Reserve of 8.9 million tonnes at 2.4% copper and a 1:1 strip ratio.

The existing 3,000tpa plant has already validated the economics of the Wetar project, which includes project cash costs of $US0.88 a pound copper at efficient production levels ($1.05/lb life of mine).

This places it amongst the lowest quartile in terms of production costs.

Other key metrics include estimated post-tax NPV of US$273 million on production capacity of 28,000tpa copper cathode.

Finders plans to achieve the production expansion by refurbishing and reassembling the former Whim Creek plant and the building of associated leach pads and infrastructure.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

11 hours, 16 minutes ago