Normandy arranges funds

Normandy Mining‘s (NDY-T) 62%-owned subsidiary, Australian Magnesium Corp. (AMC), has arranged a considerable portion of the $525 million needed to develop the proposed 90,000-tonne-per-year Stanwell magnesium project in Australia.

The Australian and Queensland governments have each provided $100 million in the form of loans and guarantees.

As well, Normandy has agreed to subscribe for $100 million worth of AMC shares between Oct. 31, 2002, and Jan. 31, 2003, at a price equivalent to that paid for ordinary AMC shares in AMC’s raising of capital. This subscription would eventually reduce Normandy’s holding in AMC to 28.4%.

Normandy has agreed to lend an additional $10.6 million to AMC until it completes its capital raising — assuming that that is in addition to a $90-million “contingent-equity facility” arranged among Normandy, AMC and its lenders in June 2001.

Normandy notes that its commitments to the Stanwell project are within the bid conditions of AngloGold’s recently announced offer for Normandy shares. The South African giant is offering 2.15 AngloGold shares for every 100 Normandy shares.