Project Financing

Grange has appointed Azure Capital, a Perth based merchant banking firm, to assist in the process of determining the most appropriate partners capable of facilitating the financing and development of the project.

In March 2006, Grange announced the commencement of an international tender process for joint venture partners. An Information Memorandum has been compiled and an on-line data room established to provide interested parties with relevant information.

In June 2007 Grange announced that a wholly owned subsidiary of the Japanese trading company Sojitz Corporation had entered into a Joint Venture Agreement with the company to become a 30% equity participant in the Southdown Project.

Under the agreement Sojitz will fund US$10.0 million on pre-commitment development expenditure including detailed engineering and design and establishing project funding arrangements.