India Resources Limited (ASX: IRL)
ASX RELEASE
5
SEPTEMBER 2008
WORKING CAPITAL FACILITY AND PROJECT UPDATE
The directors of India Resources
Limited (Company) are pleased to advise that the Company has secured a working
capital debt facility of $1.5 million from the Hong Kong
based global supply chain manager, Noble Group. The facility is designed
to provide sufficient working capital for the Company as it focuses on the ramp
up to sustainable production levels at the Surda copper mine in India.
The debt facility can be drawn down in
instalments as required and is repayable within 18 months, with repayments being
funded from forecast cash operating surpluses generated from the Surda copper
mine. The facility has been provided on normal commercial terms and is
secured by a fixed and floating charge over the Company.
Production rates at the Surda project
continue to increase in line with forecasts and the project is on target to
reach full production levels during September 2008. This will signify a
major milestone for the Company with Surda expected to achieve a cash operating
surplus before capital requirements.
The grade of the copper in concentrate
being produced at Surda remains excellent and marginally above previous
forecasts.
The Company is also in the
final stages of a feasibility study for an additional decline between the two
primary shafts at Surda with an aim to doubling production within the next two
years, and to the Company?s ultimate production target of 900,000 tonnes (9,000
tonnes of copper in concentrate).
At their request, a preliminary
proposal has also been submitted to Hindustan Copper Limited (HCL) for the
proposed expansion at Surda, however final terms have not been agreed and this
may take some time to complete. Notwithstanding this, a favourable
outcome is anticipated as the project has clear benefits for both parties.
The benefit for HCL is the increasing replacement of imported ore to the
Moubhandar smelter, which lies 5 kms to the east of the Surda mine and for the
Company, a significant positive impact on production rates and mine
profitability. The existing contract with HCL expires in 2014, however a
cornerstone to the proposed expansion will be the extension of this agreement.
Yours faithfully
ANDREW SIMPSON
Chairman
For more information contact:
Andrew
Simpson
Eoin Rothery
Chairman
Managing Director
Telephone: +618 9450 8822
Telephone: +618 9327 7444
Mobile: +618
(0)419 955
878
Mobile: +618
(0)420 904 332
Visit: www.indiaresources.com.au
About
Noble Group
Noble Group (SGX: NOBL) is a market
leader in managing the global supply chain of agricultural, industrial and
energy products. The company operates from over 100 offices in more than
40 countries, serving more than 4,000 customers. Noble manages a
diversified portfolio of essential raw materials, integrating the sourcing,
marketing, processing, financing and transportation.
Noble owns coal and iron ore mines,
grain crushing facilities, sugar and ethanol plants, vessels, ports and other
infrastructure to ensure high quality products are delivered in the most
efficient and timely manner to its customers. The company has more than
125 ships on charter at any given time. For the 2007 financial year,
Noble managed more than 128 million tonnes of product, with revenues of more
than US$23 billion.
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T: (+61-8) 9388-1474 | F: (+61-8)
9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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