The principal activity of the Consolidated Entity during the period was exploration, evaluation and development of mineral interests. The operating loss after income tax for the six months ended 30 June 2007 was USD33,680 (2006: Loss USD2,016,266).
Corporate Highlights
Munali
The European Investment Bank and Barclays Capital formally approved a senior debt finance facility of up to USD60 million for the Munali Project (May 2007).
In April 2007, the Company entered into forward contracts for 9,020 tonnes of nickel over the period from June 2009 to December 2013. The level of hedging represents approximately 15% of the Munali Project's expected payable nickel from production.
Financing agreements were signed with the Jinchuan Group Limited of China to provide USD20 million in subordinated debt funding for the Munali Project and 4,190,992 new ordinary shares were issued to Jinchuan at AUD1.55 to raise USD5 million (April 2007).
In June 2007, the Jinchuan Group advised it is conducting a feasibility study for the construction of a nickel smelter in Zambia to treat concentrates from the Munali Project. The study is scheduled for completion in the second half of 2007.
In February 2007 a power supply agreement was signed between Albidon and ZESCO Limited (the Zambian state energy company) to cover the total power requirements of the Munali Project for a ten-year period.
The formal ground-breaking ceremony to launch the Munali Project was held on 3 April 2007, at which His Excellency the President of Zambia, Levy Patrick Mwanawasa SC, was guest of honour.
Exploration Projects
The Company signed an agreement with Zinifex Limited for the exploration and development of Albidon's zinc projects in Tunisia. The agreement provides for a minimum initial expenditure of USD1.3 million by Zinifex for the first twelve months with staged cash payments to Albidon totalling USD1 million (announced in January 2007).
If you have any queries please contact the Chief Financial Officer, Nicholas Day or the Managing Director, Dale Rogers on +61 8 9211 4600 or email nickd@albidon.com.
Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen +61 8 94802500.
Additional information may also be viewed on Albidon's website at www.albidon.com
