UPDATE: RMB Resources: Rising Gold Price Encouraging Projects
February 09 2009 - 7:33AM
Dow Jones News
RMB Resources, the resource merchant banking division of Rand
Merchant Bank, Monday said the rapidly rising price of gold had
contributed to it finalizing three mining deals on the African
continent.
"While there are few new projects in most parts of the resources
sector, gold mining transactions have remained relatively buoyant,"
said Michael Schonfeld, managing director of RMB Resources.
"The large increase in the gold price is particularly good for
projects which are at the cusp of development."
Schonfeld said although Africa was no longer the frontier
continent it was in the past, it holds great promise as a resources
exploration and development destination.
RMB Resources said recent African transactions included a
project finance deal for Canadian mining company Etruscan Resources
Inc. (EET.T) in Burkina Faso, where, in addition to the original
$35 million facility, RMB Resources was arranger and co-provider of
a $7.5 million subordinated debt facility.
It said it also arranged and co-provided a $35 million working
capital facility for the development by Australian mining company
Mineral Deposits Ltd. (MDL.AU) of the Sabodala gold project in
Senegal.
It also provided a $10 million standby facility for Cluff Gold
PLC's (CLF.LN) development of the Kalsaka Gold Project in Burkina
Faso and the Angovia Gold Project in Ivory Coast.
RMB Resources has offices in Melbourne, Sydney, Denver, London
and Johannesburg and focuses on small- to medium-sized resource
companies.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com
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