US equity group invests in mine project
Mount Kellett
co-founder Jason Maynard said, "We have invested on the expectation
that Masan Resources will ultimately become the leading resources
platform in Vietnam and Indochina ."
Masan Resources
currently holds 100-percent ownership of the Nui Phao Mine. With
approximately 55.4 million metric tonnes of proven and probable reserves
of tungsten, fluorspar, bismuth and copper, the mine was expected to
begin operations in January of next year and, once fully operational,
generate over 300 million USD in revenues per year.
Upon
completion of the current deal, Mount Kellett would hold a
20-percent stake in Masan Resources, while Masan Group would retain 64
percent and Tiberon Minerals Pte Ltd 16 percent. Masan Group has a call
option to buy Tiberon's stakes over the next three years for
approximately 60-90 million USD.
Masan Group also has
obtained an eight-year senior-secured lending facility with the Vietnam
Development Bank worth 120 million USD, significantly de-risking its
position in the Nui Phao Mine. Full financial closure was expected by
the end of the first quarter, with remaining funding to come from
domestic banks and financial institutions. Total investment in the mine
was expected to reach 440 million USD, of which 155 million USD has
already been invested.
JP Morgan is serving as sole advisor to Masan Group on the Mount Kellett transaction. /.