Oriel Resources plc

Oriel Resources plc

November 30, 2006 02:30 ET

Oriel Resources plc-Update on Voskhod Financing

LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 30, 2006) - The Directors of Oriel Resources Plc ("Oriel" or "the Company") (TSX:ORL)(AIM:ORI), the London-based chrome and nickel mining and processing company, are pleased to provide an update on the progress of the debt financing of its Voskhod chrome project ("Voskhod" or "Project"), in north western Kazakhstan. We are pleased to confirm that Eurasian Development Bank ("EDB") has agreed to be involved in the funding for the development of the Project.

Debt Financing

As previously announced in our press release, dated 15 November 2006 Oriel has accepted credit approved commitments from UniCredit Markets & Investment Banking acting through Bayerische HypoVereinsbank AG ("HVB") and WestLB AG ("WestLB") to jointly arrange and underwrite a project term loan facility for up to a total of US$120 million for developing Voskhod.

Oriel is now able to announce that EDB has agreed to join HVB and WestLB in providing the project term loan facility. EDB have received their first stage credit approval to provide US$60 million of the facility and Oriel awaits their final Board approval before EDB is able to formally commit to the facility. This final approval is expected in early December.

EDB was established early this year at the initiative of Vladimir Putin, the President of the Russian Federation and Nursultan Nazarbayev, the President of the Republic of Kazakhstan. Shareholder equity will comprise of US$1.5 billion contributed by the Russian Federation and Republic of Kazakhstan. EDB will utilise banking products and services to ensure the promotion of market-orientated economic development, economic growth in the Bank's member states and the enhancement of their mutual economic and trade relations via investment activities. EDB enjoys the rights of a juridical person on the territory of member states and enjoys a special legal status that entails privileges and immunities.

Memorandum of Understanding

EDB and Oriel have also signed a Memorandum of Understanding, whereby both parties agree to work together and provide mutual assistance in order to maximise Oriel's short and long term development goals for its investments, as long as they meet EDB's goals of a positive social and economic effect for the member states of the Bank.

Endeavour Financial is advising on the debt finance.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"The Board is extremely pleased that EDB has been able to join HVB and WestLB and is finalising its approval to be a major part of the US$120 million financing for the Project. The establishment of EDB is an exciting development for the two member states and we are delighted to be involved as one of its first major financings and looking forward to long-term cooperation with EDB on our other projects"

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Oriel Resources plc
    Dr Sergey V Kurzin
    Executive Chairman
    +44 (0) 20 7514 0590
    Oriel Resources plc
    Nick Clarke
    Managing Director
    +44 (0) 20 7514 0590
    Oriel Resources plc
    Gavin Dallas
    Marketing and PR
    +44 (0) 20 7514 0590
    Website: www.orielresources.com
    Bankside Consultants
    Michael Padley / Michael Spriggs
    +44 (0) 20 7367 8888
    Vanguard Shareholder Solutions
    Keith Schaefer
    (604) 608-0824