When junior mining companies struggle to raise capital, recent funding secured by Canadian Venture listed Tirex Resources (TSX.V: TXX) from the European Bank for Reconstruction and Development (EBRD) comes as welcome news. TXX has arranged to immediately draw down EUR 1 million (approximately CAD $1,625,000) from EBRD. The loan bears interest at LIBOR plus 3%.
Funds will be utilised to advance the company’s flagship project Mirdita in Albania. Mirdita is expected to have the potential to become one of the world's great VMS Districts with multiple large economic deposits. Albania’s mineral riches are yet to be fully exploited as the country languished several decades under Socialistic regimes during which and mining was focused only on copper and was conducted by state-run Soviet, Chinese and Albanian organizations. TXX therefore appears to have secured a good deal for itself in Mirdita.
To date, TXX has drilled wide widths of gold-rich VMS mineralization in three separate areas in the 344 sq km District. In 2009, TXX will conduct expansion and definition drilling in these three areas as well as drilling extensions of other known zones of mineralization and previously untested geophysical targets. This intense drill program will run concurrently with large, District-scale ground geophysical, geochemical and mapping work.
Additional funding by the EBRD further confirms their commitment to Mirdita and TXX. It also appears that the EBRD is one of those few remaining financial institutions prepared to back resources companies. While many financial institutions around the world are dramatically scaling back investments, the EBRD plans to invest approximately EUR 7 billion in its countries of operations this year, compared with EUR 5.1 billion in 2008. TXX has maintained good relationship with EBRD and appears to have a solid partner.
About the European Bank for Reconstruction and Development (EBRD)
The EBRD was established in 1991 to nurture private sector business in emerging economies in eastern Europe and central Asia and is the largest single investor in this region. EBRD is owned by 61 different countries and two intergovernmental organizations and invests mainly in private enterprises, usually in conjunction with commercial partners. The EBRD has a credit rating of AAA from Standard & Poor, Aaa from Moody's and AAA from Fitch. EBRD has a subscribed capital totaling EUR 20 billion
About Tirex Resources
TXX is a company purpose-built to explore and develop the large 344 square kilometer Mirdita Property in Albania. The nature of the VMS mineralization in this District provides TXX investors with exposure to a high grade basket of metals: Copper, Zinc, Gold and Silver. The property covers the core of the historically productive Mirdita VMS base metal district and provides an opportunity to apply modern exploration techniques toward the discovery of new VMS deposits and extensions of known zones.