A detailed construction budget and master scheduled was presented and approved by the board recently, subject to an acceptable financing plan being arranged. The revised budget shows and estimated construction cost of $160 million excluding financing costs and completion in June 2008.
The increased construction budget and new completion date is a result of the following:
Based on the revised cost budget and completion date, an additional $75 - $80 million in financing is required in order to secure the completion of the reactivation program. Pareto Securities ASA has been engaged to arrange the financing, which will be a combination of equity and bond debt.
Mr. Christen Sveass, the company's chairman and lead investor, is personally prepared to underwrite an equity issue of $20 million valid for a period of 12 months, on acceptable terms and conditions. All shareholders will be given subscription rights on equal terms.
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