Mineral Deposits signs US$35 million bank debt facility

Mineral Deposits Limited has executed documentation and commenced drawdown of the first component of a debt financing package for the further construction and development of the Sabodala Gold Project (Sabodala) located in the Republic of Senegal, west Africa. The US$35 million Revolving Working Capital Facility has been provided by RMB Australia Holdings Limited and Macquarie Bank Limited.

Sabodala is situated some 650 kilometres east of the capital Dakar and within the Birimian belt and about 90 kilometres from major gold discoveries in Mali. MDL and the Government of the Republic of Senegal (GRS) have established an operating company to complete the project and then mine the deposit under the terms of the Mining Convention between them. MDL has a 90% holding and GRS a 10% free-carried interest in the new company (Sabodala Gold Operations SA).

The project has proven and probable reserves totalling 1.4 million tonnes of gold within a global gold resource of 2.74 million ounces. Sabodala is now 45% complete and remains on schedule to commission the two million tonne treatment plant in late September 2008. The company anticipates an initial gold pour in late October 2008.