Woulfe Mining Corp.(TSXV:WOF) announced that financing for its Sandong mine is moving forward. The Company entered into a MoU for a 12 year loan with Shinhan Bank.
As quoted in the press release:
On July 11, 2012, Woulfe and its wholly owned subsidiary, Sangdong Mining Corporation, executed a MoU with Shinhan Bank (lodged on SEDAR) for a 12-year term loan amounting to 120 Billion Korean Won (approx. US$104 Million at the prevailing exchange rate of US$1.00 = KRW1,145) for the development of the Sangdong Tungsten/Molybdenum Project.
Woulfe, CEO, Brian Wesson, commented:
The terms offered by Shinhan bank are very competitive at less than 6.0% p.a. inclusive of all costs. The KRW120 Billion debt financing will complement the $70 Million equity (US$35 million for Sangdong and US$35 million for APT refinery) put in place through the strategic deal signed earlier this year. The debt and equity at a subsidiary level will be adequate to develop the Sangdong Project through to production. Additionally, this competitive financing will contribute substantially to the value of the project. The Tetra Tech Inc. Feasibility Report dated 23rd April 2012 assessed the Project NPV and IRR to be US$400.3 million and 46% respectively and this 6% debt will have a substantial positive impact on project NPV and IRR.