Bloomberg News

LionOre Gets $250 Million Loan for Botswana Project

January 08, 2007

LionOre Mining International (LIM) Ltd., a Canadian nickel producer, said it got a $250 million credit facility from Rand Merchant Bank to fund mining projects in Botswana.

LionOre will pay Rand Merchant, the investment arm of FirstRand Bank Ltd., 1 percent over the London Interbank Offered Rate for the 9.5-year loan for a nickel project in the African country, LionOre's Chief Financial Officer Ted Mayers said in a telephone interview.

An additional $370 million needed for the nickel refining project ``will be provided by cash currently on hand at Tati Nickel,'' LionOre's partner in Botswana, according to a statement.

Shares of LionOre fell 12 cents, or 1 percent, to C$12.24 at 4:10 p.m. in Toronto Stock Exchange trading. The shares have more than doubled from a year ago.

To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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