Press release from CNW Group
Kipoi Stage 2 SXEW construction update
Tuesday, April 09, 2013
Kipoi Stage 2 SXEW construction update05:09 EDT Tuesday, April 09, 2013
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
PERTH, Western Australia, April 9, 2013 /CNW/ - Tiger Resources Limited (ASX/TSX: TGS, "Tiger") is pleased to provide an update on construction of the Stage 2 Solvent Extraction Electro-Winning (SXEW) plant at the Kipoi Copper Project in the Democratic Republic of Congo (DRC).
Project construction of the SXEW commenced on 16 January 2013 and is on schedule for first production of copper cathode in mid-2014.
Site Works and Construction
Progress with site works and civils is progressing well, with more than 60% of the bulk earthworks completed. A 70-man construction camp has been erected, and permanent site accommodation units are close to completion. Civil works for the laydown area are completed and are awaiting fencing. The pad area for a 5 MVA electrical substation is completed.
Lump sum turnkey (LSTK) contracts have been executed with the principal contractor Senet Pty Ltd (SENET) for the supply of the SXEW plant, agglomerator and stacking conveyer system. Additional fixed-price contracts have been executed for the accommodation facilities, power supply and reticulation and earthworks, and for the supply and installation of the heap leach pads.
LSTK and fixed priced contracts have now been executed for works totalling $110 million of the $161 million project budget. The balance of the project budget cost is allocated to owner's and project management costs ($21 million including taxes, duties and fees), with the remainder of $30 million provided as an unallocated contingency.
SENET is currently ahead of schedule with the design and fabrication of the plant, with all design layout work complete and more than 190 tonnes of steel fabricated.
The necessary documentation and approvals process for the $80 million ECIC standby term loan facility are progressing well. Site visits have been undertaken by the mandated arranging banks, Nedbank Capital and Rand Merchant Bank, and by the nominated Independent Technical Expert. Execution of the $30 million facility which is to be made available by Nedbank Capital and Rand Merchant Bank in advance of the ECIC standby term facility is progressing with legal negotiations on the facility agreements currently in progress. The facility remains subject to the lender's credit committee approvals, with first drawdown immediately available after the satisfaction of customary conditions precedent.
Stage 1 HMS Operations
The Stage 1 heavy media separation (HMS) plant at Kipoi continues to generate the cash flow required to meet the SXEW capital expenditure, with March 2013 delivering a new monthly production record of 4,007t of copper, 37% above nameplate capacity. Production for the March 2013 quarter of 9,488 tonnes of copper in concentrate exceeded guidance by 3%.
The full copy of the announcement is available in a release that has been filed with SEDAR and is posted on the Company's website at www.tigerresources.com.au
SOURCE: Tiger Resources Limited
For further information:
For further information in respect of the Company's activities, please contact:
(+61 8) 6188 2000
Chief Financial Officer
(+61 8) 6188 2000
(+61 0) 420 582 887
Company website: www.tigerresources.com.au