11 Oct 2010 15:04

Sunkar Resources mandates UniCredit Bank AG for Chilisai Project financing advisory

ASTANA. Oct 11 (Interfax) - Sunkar Resources has signed an agreement with UniCredit Bank AG ("UniCredit") for project finance advisory services in relation to debt financing for its Chilisai Phosphate Fertilizer Project in Kazakhstan.

"Sunkar is currently working with SNC-Lavalin and its other advisers on the Preliminary Information Memorandum, which will be announced later this year and will give investors and debt finance providers an update of the Project's economic," the company said on Monday.

The company is also progressing the Bankable Feasibility Study ("BFS"), anticipating its completion in the first half of 2011.

Sunkar Resources has signed a Memorandum of Understanding with Eurasian Development Bank (EDB).

The Memorandum reflects EDB providing up to $200 million in debt financing for a term of up to 12 years to finance Sunkar's Chilisai Phosphate Fertilizer Project in Kazakhstan.

"EDB requires certain conditions to be met including the project meeting a suitable equity to debt ratio, promoting economic integration in EDB's member states and, agreeing and executing suitable documentation," the company said in a press release.

Sunkar Resources is currently preparing a Bankable Feasibility Study aimed at securing project finance.

Sunkar also announced the appointment of Unicredit Securities, Moscow, part of the UniCredit Group, as its advisor in relation to the structuring and raising of strategic equity finance to further its Chilisai phosphate fertilizer project in Kazakhstan.

Sunkar Resources is a 100% owner of Temir Service LLP developing the Chilisai phosphorite project. Temir Service has been extracting phosphate ore at Chilisai since September 2008 and began beneficiating this ore at the end of October 2008.

The Chilisai Phosphate Rock Deposit is ideally located on a transportation hub that spans the agricultural markets from Western Europe through to China.

Sunkar Resources held IPO in June 2008 in London.