Dan Gertler and Sanctions – Congo Deals

US sanctions add pressure on Israeli businessman Dan Gertler for Congo deals

A round of sanctions announced by the US targeting human rights and corruption has named Israeli businessman Dan Gertler for his “opaque and corrupt mining and oil deals” in the Democratic Republic of Congo, adding further pressure on companies that have done business with him.

The US Treasury said Mr Gertler had used his friendship with Joseph Kabila, the DRC president, to act as a middleman for sales of mining assets in the country, one of the world’s largest producers of copper and cobalt.

“Today, the United States is taking a strong stand against human rights abuse and corruption globally by shutting these bad actors out of the US financial system,” Steven Mnuchin, US treasury secretary, said. The sanctions increase the pressure on companies to cut ties with Mr Gertler or his related companies, since US citizens are prohibited from dealing with sanctioned individuals. In February mining giant Glencore announced it would pay $534m to Mr Gertler to buy him out of two copper mines in the DRC.



Katanga Mutanda; Mining and Dan Gertler, Glencore Canada Probe

Glencore Payments Face Canada Probe — WSJ

LONDON — Glencore PLC is under investigation by Canadian regulators looking into more than $100 million in payments a subsidiary made to a company owned by an Israeli businessman who has been accused of bribing Democratic Republic of the Congo officials, said people familiar with the investigation.

The investigation stems from payments that a Canada-based copper-mining company controlled by Glencore and that operates in Congo was expected to make to Congo’s state-run mining company, Gecamines, but instead sent to a Caymans Island company owned by the Israeli businessman, Dan Gertler. Glencore has acknowledged the shift in payments and said it was done at the request of Gecamines.

Canada’s Ontario Securities Commission, the country’s biggest regional securities regulator, is investigating whether the Glencore subsidiary, Katanga Mining, violated rules requiring that companies disclose business done with their own investors, said the people familiar with the investigation. Katanga is listed in Toronto and Mr. Gertler’s company has invested in its business.

Glencore and Gecamines declined to comment. A spokesman for Mr. Gertler’s company said it disputed any allegations of bribery and follows all disclosure obligations.

A spokeswoman for the Ontario Securities Commission said the agency had a policy against commenting on the “existence, nature or status of any investigation.” Investigations by securities agencies don’t necessarily result in regulatory action.

The payments began in 2013, according to Global Witness, a nonprofit investigative group that works to publicize allegations of resources-industry corruption and brought the payments to light.

Both Gecamines and Mr. Gertler’s company, Fleurette Group, have for years been large investors in Katanga Mining’s business, according to Canadian public records. That could make them so-called related parties to Katanga, meaning that each has a significant stake in the company and therefore is potentially subject to disclosure requirements under Canada’s law, said experts on Canadian securities regulations.

Katanga had disclosed payments to Gecamines, which it described as a related party, in regulatory filings until 2014. Starting that year, Katanga disclosed no further payments to Gecamines, nor did it report the payments to Mr. Gertler’s company, according to a review of its filings by The Wall Street Journal.

Under a deal with the Congolese government, Gecamines is allocated a slice of annual sales from Katanga Mining subsidiary Kamoto Copper Co., known as KCC. But rather than send the royalties to Gecamines, KCC has been sending them to Mr. Gertler’s Cayman Islands-based company, Africa Horizons Investment Ltd., Glencore and Fleurette have said.

Glencore and Fleurette have said Gecamines wanted the money shifted to Mr. Gertler’s company to pay back a $196 million loan Fleurette made to Gecamines in 2013. The payments are ongoing, they said.

Glencore is the world’s third largest copper producer behind Chile’s state-owned copper mining company, Codelco, and Freeport-McMoRan Inc., according to CRU Group, a commodity research firm. Katanga ranks among Glencore’s largest copper operations, though work there has been suspended for the past 18 months as the company undertakes a $1 billion upgrade.

The probe represents a new risk posed by Glencore’s longtime relationship with Mr. Gertler, from whom the company has sought to distance itself in recent months.

Mr. Gertler was a central figure in a $412 million settlement in September between the U.S. Justice Department and the Securities and Exchange Commission with New York hedge fund Och-Ziff Capital Management Group LLC. The Justice Department alleged in a criminal case that Och-Ziff, in pursuit of investment profit, went into business with Mr. Gertler despite a consultant’s warnings that he used political connections in Congo to benefit himself and his associates.

The Justice Department said Mr. Gertler paid more than $100 million in bribes to Congolese officials, including President Joseph Kabila, in exchange for access to some of the nation’s best mineral assets. Mr. Gertler hasn’t been charged.

“We dispute any allegation of bribery” in Congo, a Fleurette spokesman said.

Congolese government officials haven’t responded to requests for comment about the allegations.

Daniel Och, chairman and chief executive of Och-Ziff, has said the firm’s conduct scrutinized by the Justice Department was “inconsistent with our core values.”

In response to the Justice Department findings, a Glencore spokesman said that the firm “takes ethics and compliance very seriously and is considering this information.”

Glencore and Mr. Gertler joined forces in Congo in 2007 when Glencore invested in a Congo-focused mining company called Nikanor PLC, partly owned by the Israeli businessman. Nikanor merged with Katanga a year later, forming one of Congo’s largest copper-mining operations.

Glencore in February purchased Mr. Gertler’s stake in Katanga Mining, as well has his stake in another jointly run Congo copper mine, Mutanda Mining, for nearly $1 billion, a move analysts said helped distance the company from Mr. Gertler.

The buyout, as well as rising copper and cobalt prices, have turbocharged Katanga Mining’s stock, which has surged nearly 500% in the past 12 months, according to FactSet.

With Israeli Billionaires Profiting From Human Capital in Congo, What Responsibility do they Play?


Congo rights group: Army kills 12 rebels after Beni attacks

BENI, Congo — Congo’s army fought off attacks in and around the eastern city of Beni on Thursday, killing at least 12 assailants and capturing seven, a local human rights group said.

Two soldiers also were killed in the fighting and several people were wounded, including students taking exams, said Omar Kavota, executive director of the Center for Studies of Peace and Defense of Human Rights.

Kavota blamed a new rebel coalition for the bombing of a school and attempted attacks on a women’s prison, a police station and the town hall.

The death toll could rise as Congo’s military pursues other attackers, he said.

Beni Mayor Nyonyi Bwanakawa blamed the attack on Mai Mai rebels. Kavota, however, warned that a new rebel coalition has formed outside Beni after armed men on June 11 attacked the city’s central Kangbayi prison, killing at least 11 and freeing 900 prisoners.

The new coalition, which Kavota called the National Revolutionaries Movement, is likely composed of rebels from the Mai Mai, Allied Democratic Forces and former M23 members who escaped prison.

Kavota said the new coalition may have external political and military support, given the logistics of the attacks, and he called on the government and military to quickly dismantle the group.

Kavota, whose organization tracks civilian deaths in the region, also called on the military to increase protection of civilians and public places.

Eastern Congo is home to multiple armed groups that compete for control of the region’s vast mineral resources.



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Congo peacekeepers accused of sex abuse to leave CAR Al Jazeera, Qatar 21:31 Wed, 21 Jun
UN Says Congo Withdrawing Troops From CAR Mission Voice of America 21:25 Wed, 21 Jun
Supporting the Democratic Process in the DRC Voice of America 20:25 Wed, 21 Jun
“Sexus Plexus Nexus” Pitchfork 14:00 Wed, 21 Jun
Turkish deputy PM hails Turkey-Congo relations Anadolu Agency 13:44 Wed, 21 Jun
‘UN unable to solve the crisis in DRC’ Deutsche Welle 13:02 Wed, 21 Jun
Phil Clark: UN un able to solve the crisis in DRC Deutsche Welle 12:42 Wed, 21 Jun
Understanding vaccine derived polio outbreaks Rotary International 11:30 Wed, 21 Jun
Congo’s Escalating Political Crisis Sends Millions Into Exile The Wall Street Journal 06:19 Wed, 21 Jun
The DRC can learn from Lumumba as its internal crisis deepens Mail & Guardian Africa 05:49 Wed, 21 Jun
First Cobalt announces Kipoi East exploration program Energy Business Review 04:30 Wed, 21 Jun
Civilians bear the brunt of fresh fighting in DRC Al Jazeera, Qatar 03:17 Wed, 21 Jun
Congolese Militia Is Accused of Atrocities The New York Times 22:23 Tue, 20 Jun
No aid for Kasaï crisis victims in the DRC New Vision, Uganda 17:54 Tue, 20 Jun
Sexual Violence Fuels Vicious Recruitment Cycle in Congolese Militia Inter Press Service News Agency 16:04 Tue, 20 Jun


The Death of Katumba?- a Billionaire Financier’s 29,900%, Congo, Fleurette, and a Funeral Embrace


Questions for our Readers to Ponder:

Was the death of Augustin Katumba Mwake in 2012 an accident?

Is what appears to be a very close relationship between Joseph Kabila, (who wrested control of Congo after his father was assassinated) and Dan Gertler deniable?

Had Dan Gertler as of 2014 really attracted $7 billion worth of investment in the Congo (as he claimed to critics then) or simply exploited the country for its resources, and the Congolese people for cheap labor?

How many of the events depicted in news today are attributable to the relationships that Mr. Gertler has with Kabila and the exchanges that have been made for mining rights?


DRC mining billionaire turns 29,900% profit on oil deal

Billionaire mining financier Dan Gertler has been accused by human rights group Global Witness of a strip and flip transaction in the Democratic Republic of Congo.

Bloomberg reports according to official records Nessergy, an oil driller owned by the Israeli businessman, paid $500,000 for 95% of Congo’s portion of the offshore block in 2006.

Congo’s government paid $150 million to buy it back last year, according to le Soft, a Kinshasa-based newspaper, but none of the details of the transaction has been made public despite DRC government regulations requiring large contracts involving the country’s natural resources be made publicly available within 60 days.

Bloomberg could not secure comments from either Nessergy nor the African nation’s Oil Minister, while Gertler’s financing firm, the Fleurette Group, said it is protected by confidentiality agreements with the DRC and Angola, which are jointly developing the field.

Reuters quotes a Fleurette spokesperson as saying the $500,000 signing bonus was “the standard amount companies paid to Congo for oil rights at the time the contract was agreed” and that the block’s value had risen sharply since discoveries in nearby Angolan fields.

It is not the first time Gertler’s name has been mentioned with regard to questionable natural resource deals in the DRC.

Gertler is the grandson of Moshe Schnitzer, Israeli diamond exchange founder, and arrived in the Congo in 1997 shortly after the military coup that put current president Joseph Kabila’s father in charge of the resource rich country which is almost the size of Western Europe.

Gertler is said to have used his relationship with the younger Kabila and his now late adviser Augustin Katumba Mwanke to bag mining projects “by stripping from others if necessary, only to sell them on at great profit.”

Now delisted Kazakh mining group ENRC, was forced to pay out $1.25 billion to Canadian mining firm First Quantum in 2012 after the DRC government expropriated First Quantum’s Kolwezi copper projects in the country only to sell them onto ENRC via Gertler.

ENRC acquired a 50.5% stake in Camrose, a company controlled by the Gertler family trust, for $550 million last year.

Camrose owns a stake in Africo Resources, listed in Toronto, which partners with DRC’s state-owned Gecamines in various copper-cobalt, gold and iron projects and dominates the DRC diamond trade.

Kabila has on occasion dispatched Gertler as special peace envoy for the DRC and Gertler answers his critics by saying he’s attracted $7 billion worth of much-needed investment to the war-torn country.


Congo: Denied Allegations that Kabila’s Government has Slaughtered Villagers, Armed Against the Congolese

Note to Our Readers:

The small portion of the article below is from the Wall Street Journal and was published today. It has been picked up by dozens of news sources worldwide throughout the day. However, to read the entire article requires a subscription to WSJ and on the side of caution, we are not posting the article beyond what is being circulated by other news agencies.

Our interest in this issue beyond the obvious horrors occurring in Congo whether at the hands of Kabila or otherwise, relates back to our stories of the last few days. Kabila apparently has or had close relationships with a number of our mining moguls of recent interest. It is our belief that Kabila’s weapons cache and the strength he amassed to use against his own people was provided by the same mining moguls who have exploited the Congolese people for the diamonds they could mine.

We will continue to cover our recent subjects and the mining of Congo, the potential relationship between Kabila and the subject of our recent posts, and the alleged exchanges of arms for mining contracts and the relationships these different forces have. While we most certainly would not at this juncture conclusive place the mining moguls front and center of Kabila’s alleged atrocities, the providence of any weapons exchanged for mining contracts would certainly raise questions. In our minds, the questions are already there.

To read the article in its entirety click here: https://www.wsj.com/articles/congos-escalating-political-crisis-sends-millions-into-exile-1498037400


Thousands die in conflict between government forces and militias loyal to tribal leaders as President Joseph Kabila clings to power

KYANGWALI, Uganda—The day Bungwile Mabuya discovered her husband’s mangled body near her house in the Democratic Republic of Congo’s Kasai region, she grabbed her children and ran.
The mother of five, who found refuge in a sprawling lakeside refugee camp here, is one of roughly 1.5 million Congolese fleeing a brutal power struggle pitting President Joseph Kabila against traditional chiefs, who still administer large swaths of the vast central African nation.
Government forces and local militias have killed more than 3,300 people in Ms. Mabuya’s home region since October, according to the Catholic Church, which has had its priests count the bodies since then. On Tuesday, the United Nations’ high commissioner for human rights, Zeid Ra’ad Al Hussein, accused Mr. Kabila’s government of arming a new militia he said has slaughtered hundreds of villagers—including pregnant women and toddlers—in Kasai. A government spokesman has denied the allegations.

Dan Gertler, Benny Steinmetz, Nikanor Plc, the DRC – “STAGGERING ILLICIT BEHAVIOR” – (circa 2005)


Panama Papers unravel DRC mining concession deals

The Panama Papers have thrown fresh light on the illicit nature of copper mining concession deals in the Democratic Republic of Congo, writes Barry Sergeant


The leak of data from Panama-based law firm Mossack Fonseca, dubbed the Panama Papers, has thrown invaluable new light on the identities of the parties involved in the externalization of billions of dollars from the Democratic Republic of the Congo (DRC).

The DRC houses some of the richest, biggest and most prolific mineral assets in the world. But many mines were run down and essentially ruined during the dictatorial, nationalizing, era of Mobutu Seso Seko, from 1965 to 1997.

After the turn of the century, the DRC was faced with stark opportunities. The short history since then shows that the majority of profitable mining assets in the country have been used to enrich a small – but still-unidentified – number of Congolese nationals, along with a small number of foreign nationals, many of whom are known by name.

This enrichment has been achieved through a relatively simple process. A specific DRC mining asset (say, ABC) is sold to an offshore entity, which then sells it on – known as a “flip” – at a massive profit, to another entity. The new owner then raises cash in Western markets and re-develops ABC as a legitimate mining asset. These deals are conducted by entities registered in, or associated with, tax havens, such as the British Virgin Islands.

Read the full response from Mossack Fonseca here

Key Participants

One of the best-known participants in the often unbelievably profitable DRC deals has been Daniel Gertler, an Israeli citizen. His name appears in more than 200 documents in the Panama Papers.

In March 2005, Gertler’s DGI (Dan Gertler International) formed a new firm, Global Enterprises Corporate (GEC), in partnership with Benjamin Steinmetz’s Global Resources (BSGR), and with former DRC mines minister, Simon Tuma-Waku, named as a “special adviser”. Steinmetz, also an Israeli citizen, is one of the biggest De Beers sightholders ‒ authorized bulk purchasers of rough diamonds. His name appears in 282 documents in the Panama Papers.

The key assets in GEC (later renamed Nikanor) were the Katanga province’s KOV, Tilwezembe and Kananga brownfields projects. Nikanor’s primary activities were at KOV (the Kamoto East, Oliveira, Virgule and FNSR orebodies). The objective at the massive ruined mine was to rebuild its facilities, with the aim of producing 250,000 tons a year of London Metal Exchange A-grade copper cathode and 27,500 tons a year of cobalt products. Copper output could be increased over time to 400,000 tons a year, potentially ranking Nikanor as a world-class mine.

Following a preliminary agreement dated 5 May 2004, a joint-venture (JV) agreement had been signed with DRC copper-cobalt parastatal La Generale Des Carriers et Des Mines (Gécamines) in September 2004. The final JV structure was held 75% by GEC and 25% by Gécamines. Total investment required for the project was put at between $600-700 million.

At the time, news of the deal started something of a battle with long-established Katanga copper-cobalt producer George Forrest’s Kinross-Forrest, which later emerged as Katanga Mining, the company that owned assets immediately adjacent to Nikanor’s. The assets of the two companies had previously been operated as a single, large unit; many argued that the assets should never have been separated in the new process of “privatization”.

At this stage Gertler had already been seen in the presence of DRC president Joseph Kabila and appeared to make no attempt to conceal their acquaintance. Gertler would jet into Kinshasa and leave the same night. Gertler, it would emerge, was also increasingly close to Kabila’s closest aide, Augustine Katumba Mwanke.

Immune to Criticism

Following the signing of the Gécamines-GEC JV in September 2004, the anti-corruption Lutundula Commission recommended, when filing its report in June 2005, that ongoing negotiations on the KOV basket of assets, among others, be halted. But on 13 October 2005, a presidential decree ratified the KOV agreement between Gécamines and GEC.

It should be noted that the DRC government often and invariably acts in a dictatorial manner, and one that is generally immune to criticism or scrutiny.

In July 2006 it emerged that Gertler and Steinmetz had placed GEC’S 75% share in KOV into a new corporate vehicle registered in the Isle of Man, Nikanor Plc. With JPMorgan Cazenove acting as advisers and brokers, Nikanor’s directors, headed by Jonathan Leslie (Rio Tinto’s former head of copper operations) launched a roadshow in London in mid-July 2006.

The initial public offer raised £400 million, based on a prospectus promoting Nikanor’s 75% interest in the KOV assets contributed by Gécamines. Nikanor achieved a market capitalisation value of $1.5 billion, and was hailed as the most valuable listing on London’s Alternative Investment Market.

After Nikanor was listed in London, Gertler held 15% of the entity, worth $225 million. Steinmetz controlled nearly 60% of the shares, now worth nearly $900 million. For this value of more than $1 billion, Gertler had initially paid just $3 million. When questioned on this, Gertler said, through an agent, that numbers were irrelevant: “what counted was the money promised for investment”.

While Nikanor had raised $380 million in cash when it listed in London in July 2006, it raised a further $777 million a year later. Much of the second tranche came by way of Glencore, the Switzerland-based commodities trader and resources investor.

Glencore (a name that appears in 660 documents in the Panama Papers) would later confirm that it was allocated 50 million new Nikanor shares. Half of the 50 million new shares allocated to Glencore were confirmed as having been applied for on behalf of Ruwenzori Limited, a special purpose vehicle which, according to Nikanor, is “managed by RP Capital in which a major shareholder is a discretionary trust, in which Dan Gertler is a potential ultimate beneficiary”. The Ruwenzori entity traced back to an address in the Cayman Islands.

The lesson from the listing of Nikanor in London was that Gertler had paid $3 million for assets which had realized a market value of more than $1 billion. Had the DRC government taken this to hand, it would surely have devised a simple international tender procedure for its mining assets, as it continued to privatize. What happened, in practice, was the opposite; Gertler’s activities only intensified, using the opaque waters of tax havens and minimal-disclosure jurisdictions.

Government and Stock Exchange Complicity

The DRC government has been complicit in these activities, as have investors on international stock exchanges. One of the most aggressive attacks on free enterprise started in January 2010, when Gécamines revoked a contract with Canada-listed First Quantum for a joint venture in the Kingamyambo Musonoi Tailings SARL (KMT) copper project.

Up to that time, First Quantum had spent around $750 re-developing a copper retreatment plant at KMT. Leaked evidence indicated that the majority stake in KMT had been sold in January 2010 to the Highwinds Group ‒ Highwinds Properties, Pareas Limited, Interim Holdings, and Blue Narcissus (each registered in the British Virgin Islands and each with a Gibraltar address). The Highwinds Group, as it turned out, was ultimately owned by Gertler. The sellers of KMT were the DRC government, Gécamines, and the La Société Immobilière Du Congo.

The leaked contract stipulated that Highwind would pay $60 million for the assets as a signature bonus. ENRC, a Kazakhstan-based entity, spent $689 million buying control of a stake in KMT, when it bought control of Camrose, which owned the Highwinds entities. For Gertler, the stakes were apparently rising: in this case, for realising value of nearly $700 million, he had had to pay $60 million upfront.

Criminal Investigation

There has been some justice, in a sense, in response to these dubious activities. During 2012 Fasken Martineau, a law firm, recovered $1.25 billion in the case of First Quantum vs Highwinds and Others. The settlement went further in that ENRC also purchased First Quantum’s residual claims and assets in the DRC.

During April 2013, the UK’s Serious Fraud Office opened a criminal investigation into ENRC’s business practices. ENRC stated that the UK authorities were investigating whether it had breached Britain’s rules for listed companies, specifically with acquisitions made in the DRC. In November 2013 ENRC de-listed from the London Stock Exchange

The DRC has long ranked at the forefront of illustrating the billion-dollar “leakages” associated with opaque concession trading. Towards the end of 2010, the DRC government agreed to publish all mining and oil contracts. In 2011, it signed a decree requiring that contracts for any cession, sale or rental of the state’s natural resources be made public within 60 days of their execution.

In 2012, however, the International Monetary Fund (IMF) stopped a loan programme after the DRC government failed to publish full details of a yet another mining deal, involving Gécamines, for a stake in a major copper concession. The recipient was a company registered in the British Virgin Islands.

Following the IMF’s decision to halt three tranches of loans totalling about $225 million, the African Development Bank announced that it was withholding a planned $87 million in budget support. The World Bank had briefly suspended loans in 2010 because of related concerns over concession arrangements.

Illicit Practices ‘Staggering’

If government commitments are not serious, what other steps can be taken? In its reaction to the Panama Papers, the African Union (AU)/United Nations Economic Commission for Africa (Uneca) High Level Panel noting that Mossack Fonseca had “worked with more than 14,000 banks, law firms, company incorporators and other middlemen to set up companies, foundations and trusts for customers.”

“The papers elaborately bring to light issues that the AU/UNECA’s High Level Panel on Illicit Financial Flows from Africa vigorously underscored in the findings in its report released and endorsed by African Heads of State and Government in January 2015.”

Thabo Mbeki, chairman of the High Level Panel, said: “The papers confirm the existence of a network of offshore accounts and complex investment vehicles that drive tax avoidance and evasion. Until now warnings against such vehicles have been taken lightly. The staggering amount of illicit practices and the large number of global actors exposed by the Panama Papers demonstrate that governments of Africa and the rest of the world cannot avoid firm action.”

In a major 2013 study, the African Progress Panel, chaired by Kofi Annan, stated that hundreds of offshore-registered companies were linked to investments in extractive industry concession trading in Africa. The panel noted that many are registered in traditional tax havens, such as the Cayman Islands, the British Virgin Islands and Bermuda.

Some are associated with shell companies registered in the UK, while others are integrated into networks that extend from offshore private banking and trading centres in Switzerland or the US.

Offshore trading makes it possible for investors to hide the real beneficial owners, or the ultimate beneficiaries, of companies. The panel stated that by using multiple investment vehicles, a practice known as “layering”, compounds the problem. The panel stated that this practice is widespread in Africa.

One company operating in Sierra Leone in 2011 used three separate offshore holding companies (two registered in Guernsey and one in Bermuda) with a primary owner registered in Bermuda, that was in turn owned by three separate holding companies (two of which were registered in London and one in China).

Mbeki argues that “we should not misconstrue the release of the Panama Papers as a time for celebration or an end in itself. To the contrary, it is rather a time for deep reflection and regret that we have allowed the practice to persist which is made possible among others by the existence of tax havens/financial secrecy jurisdictions. Now is the time for the global community to act in a firm and comprehensive manner to end the illicit financial flows and close down the tax havens/financial secrecy jurisdictions.”

Old News/New Implications – Platinum Burying its Money in Mines and Options… Think 8 Years Ahead…

Cokal issues options to Platinum

Tuesday, 12 April 2016

Lou Caruana

COKAL will grant 50 million options to a fund managed by Platinum Partners as part of a $2.5 million debt for equity deal as it continues to discuss merger and funding deals with other partners after its proposed sale to Indonesian group Cakra stalled last November.

To access the entire article click here.

Cokal welcomes new financier




PERTH (miningweekly.com) – Coal developer Cokal has welcomed Cedrus International as a funding partner for its Bumi Barito Mineral (BBM) coal project, in Indonesia.
Cedrus has joined Platinum Partners in providing a nonbinding term sheet in relation to $110-million in funding to develop the BBM project.

The project facility would be equally funded between Platinum and Cedrus, and would be sufficient to fund the construction and commissioning of the two-million-tonne-a-year BBM project, as well as the working capital requirements during the development phase.
The syndicated facility would have an interest rate of 13% and a marketing fee of 2.5% of the gross sales from coal produced and sold from the first phase of operations. A royalty of 1.35% would be payable of the gross sales from the project as a whole.
The financiers would also be awarded 85-million options, at an exercise price of 13c each, with an exercise period of eight years.
Cokal chairperson and CEO Peter Lynch said that the addition of Cedrus supported Cokal’s view of the merits of the BBM project, and confidence in Indonesian mining opportunities generally.

“The confirmation of the Platinum/Cedrus financing is a significant achievement for the company and, when completed, will put us on target to start construction promptly after receiving the final forestry approval, which is expected this quarter.”
The feasibility study estimated that a capital investment of $75-million would be required to build the operation. Based on the current resource of 266.6-million tonnes, the project would have an estimated life of ten years.

To read the article as originally printed click here.



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SOURCE Cedrus Investments