10 Apr 2008

Australia's Solomons Gold Limited secures financing with local banks

10:22 am on 10 April 2008

Australia's Solomons Gold Limited has secured financing with local banks to develop the Gold Ridge Project.

The Solomon Islands Broadcasting Corporation reports the company proposes to develop the project with finance provided in the form of bank debt, equipment leasing, and equity financing.

The company says the proposed syndicate of lenders to the project requires Political Risk Insurance for the project debt and equipment leasing facilities.

A-S-G says the process of obtaining the insurance requires extensive discussions by insurance providers, regarding environment and social issues affecting the Gold Ridge Project.

The company says the change in Governments in Australia and Solomon Islands in late 2007 has improved the political environment between the two countries.

But the australian company says it has recently been advised that the remaining process requires an independent review of social reports and plans.

An offer of insurance is now expected by September 2008.

A-S-G says debt financing is not expected to be in place until formal P-R-I approval in September 2008.