Discovery Metals Limited (DML) says Caterpillar Financial SARL has joined the Boseto Debt Facility syndicate as a Joint Lead Arranger.
In an update to shareholders this week, the Botswana Stock Exchange (BSE) quoted company told shareholders the funding will be applied to the Boseto processing plant for US$105 million and the mine mobile fleet for US$75 million.
Caterpillar will be the largest supplier of the mining fleet for the operations.
“Adding Caterpillar Financial SARL to the debt syndicate reflects the on?going commitment that Caterpillar has to the Boseto project,” Discovery Metals’ Managing Director, Brad Sampson, said.
“The incorporation of all debt facilities into one facility completes the funding for Boseto and simplifies the documentation and security arrangements significantly,” he added.
Caterpillar Financial SARL is the structured trade and project finance arm of Cat Financial.
For nearly 30 years, Cat Financial, a wholly?owned subsidiary of Caterpillar Inc., has been providing a wide range of financing alternatives to customers and Caterpillar dealers for Cat machinery and engines, Solar® gas turbines and other equipment and marine vessels.
Cat Financial has offices located throughout the Americas, Asia, Australia and Europe, with headquarters in Nashville, Tennessee, in the U.S.A.
Caterpillar Financial SARL is to be the largest supplier of mobile equipment to the Boseto Copper Project.
The facility will be secured over the Boseto Copper Project assets and 100 percent of the shares the company owns in the project entity (Discovery Copper Botswana Proprietary Limited).
Caterpillar Financial SARL joins the other mandated joint lead arrangers of Standard Chartered Bank, Standard Bank and Credit Suisse.
Two weeks ago, the company said that it had mandated leading banking houses to provide the debt finance that will be used towards the development of Boseto Copper Project in the north-west part of Botswana.
Securing of the project debt finance facility for the Boseto copper project marks the completion of the external requirements for the company to transition from explorer to copper and silver producer.
In addition to project and equipment finance, the banking syndicate will provide a US$25 million overrun and working capital facility plus hedging lines for both copper and silver production.
The Boseto copper project is currently under construction and is expected to be completed and commissioned in the first half of 2012.
