LionOre Gets $250 Million Loan for Botswana Project

LionOre Mining International (LIM) Ltd., a Canadian nickel producer, said it got a $250 million credit facility from Rand Merchant Bank to fund mining projects in Botswana.

LionOre will pay Rand Merchant, the investment arm of FirstRand Bank Ltd., 1 percent over the London Interbank Offered Rate for the 9.5-year loan for a nickel project in the African country, LionOre's Chief Financial Officer Ted Mayers said in a telephone interview.

An additional $370 million needed for the nickel refining project ``will be provided by cash currently on hand at Tati Nickel,'' LionOre's partner in Botswana, according to a statement.

Shares of LionOre fell 12 cents, or 1 percent, to C$12.24 at 4:10 p.m. in Toronto Stock Exchange trading. The shares have more than doubled from a year ago.

To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.