SYDNEY (Yosefardi) – ASX-listed Sumatra Copper & Gold Plc prepares a proposed changes at its Tembang gold-copper project in Sumatra related to ongoing volatility in gold and silver markets and changed conditions in credit markets.
“The proposed changes are expected to result in a significantly more robust project. However, the timeline to production is likely to be delayed by the later than expected draw-down of the debt funding,” the company informed investors this morning.
Sumatra has previously announced a funding package for Tembang comprising A$28.6 million of equity and US$35 million of debt finance. Credit Suisse has approved a US$30 million in senior debt finance facilities plus up to US$5 million in cost overrun funding.
“The sharp fall in the gold price resulted in a downward revision of the prices used by the project financiers to evaluate the debt-carrying capacity of the Tembang project,” Sumatra said.