Global Alumina to receive next $33M payment for its share of Guinea project

TORONTO — Global Alumina Corp. (TSX: GLA.U), which is involved in a joint venture to develop an alumina project in the Republic of Guinea, said its partners have agreed to pay it the second payment of about $33.3 million for its share of the project. The company, which is based in New Brunswick, has a one-third share of the project, which includes developing an alumina refinery, mine and associated infrastructure. The second deferred subscription payment is expected within five business days, and will give Global Alumina about $114.5 million in cash. Global Alumina said about $100.8 million of that money is in escrow available for project development, and about $13.7 million is unrestricted and available for general corporate purposes. A final third deferred subscription payment of $33.3 million remains due to the company on the completion of the project debt financing. The joint venture partners have contributed $323.2 million of capital, before which Global Alumina had invested approximately $220 million. The joint venture board also approved continued project funding of $36.2 million for December, of which Global Alumina will be responsible for one-third. The joint venture partners in the project are Global Alumina International, Ltd., a wholly owned subsidiary of the company, BHP Billiton, Dubai Aluminium Company Ltd and Mubadala Development Company PJSC. "Although the joint venture partners have not yet confirmed their satisfaction of the transfer of the mining concession to Guinea Alumina Corporation, Global Alumina and its joint venture partners have agreed on a process by which outstanding matters can be resolved," the company said in a release Tuesday. Global Alumina is headquartered in Saint John, N.B. and has offices in New York, London and Montreal. ---The Canadian Press