Oriel Resources plc

Oriel Resources plc

December 18, 2006 10:15 ET

Oriel Resources plc: Voskhod Chrome Project Closes Financing Commitment of US$120 Million

LONDON, UNITED KINGDOM--(CCNMatthews - Dec. 18, 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 announce the closing of a US$120 million loan facility ("Facility") for the Voskhod chrome project ("Voskhod") in Kazakhstan.

Oriel is delighted to announce that on the December 15 it closed the US$120 million loan facility with Eurasian Development Bank ("EDB"), UniCredit Markets & Investment Banking acting through Bayerische Hypo- und Vereinsbank AG ("UniCredit Group (HVB)") and WestLB AG ("WestLB"). These institutions have agreed to provide loan facilities totalling US$120 million for Oriel's Voskhod Chrome Project. The Facility consists of two tranches:

- Tranche 1 - US$100 million for the construction, development and operation of Voskhod; and

- Tranche 2 - US$20 million for potential overruns related to capital and working capital costs at Voskhod.

Drawdown is expected during Q1, 2007 following the satisfaction of the remaining conditions precedent to the Facility.

Endeavour Financial acted as Financial Adviser to Oriel.

Dr Sergey V Kurzin, Executive Chairman of Oriel commented:

"The Board is extremely pleased to have closed the financing in such short a time frame and to have the support of EDB, HVB and WestLB. We welcome EDB's involvement in our Voskhod Project and are delighted to be involved as one of its first major financings. We look forward to long-term cooperation with EDB on other projects within the region. Our thanks also go to Endeavour Financial for their hard work in arranging the Facility for us."

Notes to Editors:

Oriel Resources was formed in July 2003 with Dr Sergey V. Kurzin as Executive Chairman and CEO and is a London-based chrome and nickel mining and processing company with its Ordinary Shares and Warrants admitted to trading on the Alternative Investment Market (AIM) and its Ordinary Shares listed on the TSX Stock Exchange.

Its primary focus is on the identification, acquisition, exploration and development of advanced chrome, nickel, and other alloying opportunities in the countries of the FSU, including The Republic of Kazakhstan and The Russian Federation. The Oriel group currently has three projects, namely the Tikhvin smelter project, Russia, the Voskhod chrome project and the Shevchenko nickel project, both situated in north-western Kazakhstan. Following the results of recent feasibility studies for the Russia and Kazakh-based projects and given the current high demand for chrome and nickel products, the directors are fast-tracking the Voskhod chrome and Tikhvin smelter projects into production while further developing the Shevchenko nickel project.

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
    +44 (0) 20 7514 0591 (FAX)
    Email: info@orielresources.com
    Website: www.orielresources.com
    Bankside Consultants
    Michael Padley / Michael Spriggs
    +44 (0) 20 7367 8888
    Vanguard Shareholder Solutions
    Keith Schaefer
    (604) 608-0824