US$60m Munali Finance Approvd

RNS Number:7483V
Albidon Limited
30 April 2007


                                                                        Level 1
                                                                    62 Colin St
                                                                West Perth 6005

ALBIDON LTD                                                    Western Australia
                                                                ARBN 107 288 755



                                                            Tel:x+61x8x9211 4600
                                                    Fax:x +61x8x9211 4699 Email:
                                                              xinfo@albidon.com
                                                                  ASX Code: ALB
                                                                   AIM Code: ALD





Market release
                             via electronic lodgement



US$60M FINANCE APPROVED FOR MUNALI NICKEL PROJECT





HIGHLIGHTS



  * The European Investment Bank and Barclays Capital have formally approved
    and signed a senior debt finance facility of up to US$60 million for the
    Munali Nickel Project.



  * The financing provides the remaining funding required for development of
    Munali, including construction costs, working capital requirements and will
    also ensure Albidon retains sufficient funds for exploration and business
    development activities.



  * Approval of the senior debt financing marks the successful completion of
    due diligence and detailed documentation.





Munali Nickel Project



The Munali Nickel Project is located approximately 60 kilometres south of
Zambia's capital city Lusaka. A positive Bankable Feasibility Study was
completed in July 2006 and site works commenced in September, following receipt
of all required approvals. A capital raising was completed in October to provide
US$35 million of equity finance for the project funding.



Following the signing of an offtake agreement in December 2006, an offtake
financing package was recently concluded with Jinchuan Group, comprising US$20
million in subordinated debt and a US$5 million equity investment.





US$60 Million Senior Debt Financing



The European Investment Bank ("EIB") and Barclays Capital ("Barclays") were
mandated to act as joint Lead Arrangers to provide a financing facility for
Munali of up to US$60 million, as announced in January of this year.



EIB and Barclays advise they have now received formal board and credit committee
approval to complete the senior debt funding arrangements for the project.
Together with the October 2006 equity capital raising of US$35 million and US$25
million in offtake financing recently concluded with Jinchuan Group, this
completes the financing arrangements required for development of the Munali
Nickel Project.



The key features of the senior loan facilities are as follows:



  * Loan amount up to US$60 million.
  * US$40 million to be provided by EIB and US$20 million to be provided by
    Barclays.
  * Loan tenor of six years.
  * Political risk insurance required on only a portion of the facility.



The funding is subject to satisfaction of standard conditions precedent for
first draw down.



European Investment Bank and Barclays Capital



EIB is the long-term financing institution of the European Union and has
extensive experience of funding investment projects, including the mining
sector, in Africa. This expertise includes current base metal mining and
processing projects in Zambia and neighbouring countries. EIB has been an
important supporter of Albidon since 2002, through its investment in the African
Lion Mining Fund.



Barclays Capital, the investment banking division of Barclays Bank PLC, is a
leading provider of finance to the mining sector and has a wealth of experience
in financing projects in Africa. The Mining & Metals team at Barclays Capital is
complemented by one of the strongest commodities groups in the banking sector
who will coordinate the risk management of the Munali project. Barclays also
currently provides commercial banking services to Albidon in Zambia.



Albidon is pleased to have the support of two such distinguished groups and
looks forward to extending our existing relationships with EIB and Barclays to
develop Munali for the benefit of all stakeholders.



Forward Programme for Munali



The implementation of the Munali Project is progressing, with a focus on the
following key areas of activity:



  * Development of the underground decline access following successful
    completion of the boxcut.
  * Tender of the long term mining contract.
  * Installation of the long term power supply system by Zesco, the Zambian
    power authority.
  * Site preparation for initial earthworks on the Munali concentrator.
  * Ordering of additional items of equipment for the concentrator.
  * Recruitment of additional key personnel to implement the project.



Initial concentrate production and subsequent project ramp up is targeted to
commence in mid 2008.





By order of the Board
Albidon Limited







If you have any queries please contact the Chief Financial Officer, Nicholas Day
or Managing Director, Dale Rogers on +61 8 9211 4600 or email nickd@albidon.com.



Additional information may also be viewed on Albidon's website at
www.albidon.com



Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen
+61 8 94802500.





                      This information is provided by RNS
            The company news service from the London Stock Exchange
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