Gippsland Limited (GIP) – Obtain Untied Term Loan guarantee from German government

Gippsland Limited (GIP), who are developing the 44.5 million tonne Abu Dabbab tantalum project in Egypt, announce today that the German Inter-ministerial Committee (IMC) led by the German Federal Ministry of Economics and Technology has confirmed the eligibility of the Abu Dabbab Project for an Untied Term Loan or Ungebundener Finanzkredit. 

The German government’s UFK facility provides German lenders, insurance against commercial and political risk, which in turn enables German banks to offer Project finance at a reduced interest rate.  The UFK is subject to the Project finance due diligence process presently being undertaken by KfW and DEG. 

Gippsland is presently undertaking Project finance negotiations with the German banks KfW IPEX-Bank GmbH and DEG – Deutsche Investitions und Entwicklungsgesellschaft mbH.  Both are part of KfW Bankengruppe, which is 80% owned by the German Federal Government, and 20% by the German Federal States (HBundesländerH).

Gippsland Executive Chairman Jack Telford said, “The eligibility of Abu Dabbab for UFK cover reflects the Project’s outstanding importance for the Federal Republic of Germany in securing a reliable long term supply of this vitally important strategic metal.  While a UFK facility clearly provides significant direct benefits regarding debt finance, it also serves to provide equity investors with increased confidence in the Project in general”