Amex Resources (ASX:AXZ) has executed a US$80 million funding facility for development of its Mba Delta ironsands project in Fiji.This will fund a Plant and Design-Build FIDIC Contract that is expected to be finalised and signed in October 2015.Amex has been negotiating with a highly regarded port infrastructure specialist and leading Chinese construction firm, with previous experience in Fiji and knowledge of the Mba Delta project, to undertake and commence the port construction works.It is also in discussions with several major international groups regarding supply of the marine fleet required for dredging, processing and barge transportation of the ironsands material.The company intends to pursue a share placement to provide additional working capital in the near future.Funding DetailsThe facility comprises a US$30 million loan and an underwriting agreement for a further US$30 million during the 18 month construction period.After signing the FIDIC contract, the company will drawdown the full US$30 million loan.This has an 18% per annum interest rate with a 12 month term along with a further 12 month option at Amex's discretion.The company will issue 10 million shares and 10,000 unlisted options exercisable at $0.80 for a three year term as upfront payment of the interest for the initial term.The underwriting agreement has a two-year term and also draws an interest rate of 18% per annum.Mba Delta Ironsands ProjectThe project is a simple flat lying blanket of fine to coarse magnetite-bearing black sand about 15 kilometres long and up to 4 kilometres wide at the mouth of the Ba River in the northwest of Viti Levu Island. This produces a high-quality and low impurity magnetite product that can be readily extracted at low cost by dredging of unconsolidated sediments with simple magnetic separation recovering the magnetite concentrate.Following an initial six-month ramp up period, annual production of 750,000 tonnes of magnetite concentrate targeting 58% iron will be sold primarily to steel mills in China. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.
