Kaboko Mining (ASX: KAB) will soon provide an update on the finalisation of Tranche A of the Debt Facility and Offtake Agreement with Noble Resources International and has gone into an ASX trading halt.
The US$3 million funding, which when combined with the advance payment of US$1 million, provides Kaboko with the funds to complete mine development and associated plant and equipment purchases at its Northern Manganeseproject at Mansa, Zambia.
It will also allow the company to start deliveries of high grade manganese ore to Noble with the first delivery slated for the June quarter of 2013.
Kaboko will receive an advance of US$4 million upon delivery by Kaboko of 105,000 tonnes of manganese ore under the 10 year offtake agreement as Tranche B of the $10 million prepayment debt facility.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 28th February 2013.
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