Eurasian Development Bank MoU for $200 mln signed
07.09.2010SUNKAR RESOURCES PLC
("Sunkar" or the "Company")
Memorandum of Understanding with Eurasian Development Bank Signed
Sunkar Resources plc (AIM:SKR) is pleased to announce that it has signed a Memorandum of Understanding ("MoU") with Eurasian Development Bank ("EDB"), an international financial institution established by Russia and Kazakhstan to develop market economies in its member countries. The MoU reflects EDB and Sunkar's common interest in financing Sunkar's Chilisai Phosphate Fertilizer Project in Kazakhstan.
The MoU envisages EDB providing up to $200 million in debt financing for a term of up to 12 years. EDB requires certain conditions to be met including the project meeting a suitable equity to debt ratio, promoting economic integration in EDB's member states and, agreeing and executing suitable documentation.
Nurdin Damitov, Director of Corporate Development of Sunkar, commented:
"The signing of this MOU with EBD confirms our determination to develop the Chilisai Fertilizer Project in line with our current strategy and timetable. We are currently preparing a Bankable Feasibility Study aimed at securing project finance and this MOU is an important milestone in its achievement. It signals a significant level of confidence in the project - many successful financings of large scale projects, including agri-industry developments, have been assisted by support from development banks such as EDB which recognise the regional or national structural importance of these projects as well as the immediate commercial benefits. I am therefore very pleased that EDB with its track record is working with us to realize our aim to be one of the lowest cost producers of phosphate fertilizer in the world."
For further information please contact:
Sunkar Resources plc
Serikjan Utegen, CEO Tel: +44 20 7930 8678
Donald Sinclair, CFO
Canaccord Genuity Limited
Andrew Chubb Tel: +44 20 7050 6500
Bhavesh Patel
GMP Securities Europe LLP
Andrew Young Tel: +44 20 7647 2800
Bankside Consultants
Simon Rothschild Tel: +44 20 7367 8888
Louise Mason
Editors Notes
Sunkar Resources plc
Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the nearby North Caspian oil and gas fields and regional long-term marginal priced gas.
The Chilisai Phosphate Rock Deposit is ideally located on a transportation hub that spans the agricultural markets from Western Europe through to China.
Eurasian Development Bank
EBD is an international financial institution, established by Russia and Kazakhstan in January 2006 to promote development of market economies of member states, their sustainable economic growth and expand mutual trade-economic relations. The share capital of EDB is above one and half billion US dollars. Bank's member states are Russian Federation, Republic of Kazakhstan, Republic of Armenia, Republic of Tajikistan and Republic of Belarus.
To know more detailed information regarding the Bank please visit: http://www.eabr.org