The Europefixed jaw plate of jaw crusheran Investment Bank (EIB) has approved a €13-milion
senior secure participating loan for MagIndustries, for the
development stage of projects in Kouilou, in the Republic of Congo,
the company has disclosed. The €13-million facility carries a
3% coupon rate for the first three years, increasing to 9% over the
balance of the term.
The EIB has been granted one-million share purchase warrants
exercisable until the third anni-versary of their issuance. Each
warrant entitles the holder to acquire one common share in the
capital of MagIndustries at an exercise price of $1 a share. The
EIB and MagIndustries expect that the facility will support
bankable feasibility studies and development work for a series of
individual but interlinked projects centred on the company’s
Kouilou magnesium deposits.
The main objective of the studies concerns the phased development
of three industrial com-ponents: a potash plant (MagMinerals), a
magnesium smelter (MagMetals) and the rehabilitation of hydropower
units. The EIB is the European Union’s financing institution
that contributes towards the integration, balanced development and
economic and social cohesion of the member countries.