Conquest Mining Limited advised that the company has received an indicative term sheet and detailed debt financing proposal from a senior bank to fund construction of a mine at its 100% owned Silver Hill gold, silver and copper project in northern Queensland.

The company has also received a detailed proposal from a major Chinese smelter for off take of 30,000 tonnes per annum of high grade gold, silver and copper concentrate from Silver Hill.

Mr John Terpu MD of Conquest said that the strong interest in the project from prospective financiers and off take partner supported Conquest's view of Silver Hill as one of Australia's highest value, lowest cost new gold projects. He added that "In terms of project funding, we are currently in the process of selecting lead arrangers and negotiating a debt facility of up to AUD 80 million on terms and pricing that are very attractive to us. Combined with existing cash reserves and possible additional equity, finalizing the debt and off take proposals will be key to meeting the total development cost."

Mr Terpu said that the expedited DFS had also placed Conquest in a strong position to engage with potential off take partners. He added that "We have received a detailed Expression of Interest for off take of Silver Hill product from a Chinese smelter with whom we have a long standing association. Following completion of detailed product sampling and due diligence by the smelter, we are now in advanced negotiations on the final terms of an off take agreement."

Mr Terpu said that "With the progression of advanced funding and off-take agreements, as well as the continuation of the expedited DFS, all the elements of the Silver Hill project are coming together. In addition, recently released drill results from the area immediately surrounding the established resource suggest significant upside to what is already shaping up as one of Australia's lowest cost, high value gold projects. We look forward to providing further updates as we continue to work our way through the development program for Silver Hill and onto production in 2010."

(Sourced from www.abnnewswire.net)