Energizer Resources Inc. (TSX:EGZ,OTCQX:ENZR,FWB:YE5) signed a non-binding Letter of Intent with Caterpillar Financial Services’ Mining Finance Division on financing arrangements for the Molo Graphite Project in Madagascar.
Cat Financial has presented Energizer, in principal, two possible debt finance structures to consider individually or possibly in combination with each other:
a) To co-arrange with other financial institutions or banks a project finance loan;
b) Arrange equipment loan (up to 70 percent of the Cat® equipment value) for the purchase of Cat equipment in connection with the Project.
Cat Financial has also expressed an interest to act as Energizer’s financial adviser and funding partner, where the two companies would develop an optimal financing structure together, pending further due diligence on the Project.
Energizer Resources President and COO Craig Scherba said:
Energizer has made significant progress on the development of its Molo Graphite Project and we are very pleased that Cat Mining Finance has recognized this fact and more importantly has expressed this recognition by its interest in further evaluating and providing Energizer with a financing solution for our Project. One of the requirements for Cat Financial to elevate this agreement to a definitive Memorandum of Understanding is a completed Full Feasibility Study, which is now being expedited by Energizer.