RE:RE:underground update Good question - perhaps they are building up the cash pile to take a run at TRQ some time after the election. ;-)
2:36 am Turquiose Hill Resources provides update on progress toward underground construction and EPCM contract signing (TRQ) :
Co provided an update on progress toward the start of underground construction, including project finance drawdown and the signing of an engineering, procurement and construction management (:EPCM) contract.
Project finance drawdown
- Oyu Tolgoi has drawn down ~$4.0 bln of the project finance facility that was signed in December 2015 and provided by a syndicate of international financial institutions, export credit agencies representing the governments of Canada, the United States, and Australia as well as 15 commercial banks. Steps are being taken to finalize the drawdown of the additional $0.4 billion and are expected to be largely complete in the coming weeks. As part of the project finance facility, a debt cap of $6.0 billion for Oyu Tolgoi was agreed, which provides the possibility for an additional $1.6 billion of supplemental debt in the future.
- Net funding received to date has been used by Oyu Tolgoi to pay down shareholder loans payable to Turquoise Hill. Net funding will be available for drawdown by Oyu Tolgoi as required for the development of the underground mine.
- EPCM contract signing
- Oyu Tolgoi has signed a contract with Jacobs Engineering Group (JEC) to provide EPCM services for underground development, which paves the way for construction to begin. Jacobs will be responsible for the materials handling systems for the underground mine and associated surface and underground infrastructure. The project is expected to be delivered over a five to seven-year period.
- First draw bell production from the underground mine is expected in 2020.