Astra Resources: milestone $750m project financing secured with MidOil USA

International diversified resources company, Astra Resources PLC (FWB Code: 9AR), continues to develop at rapid speed – with the company now signing a $750 million corporate financing agreement with New York City based MidOil USA.
 
The agreement, which will be carried out over five years via investment banking programs conducted by MidOil USA, will also result in the formation of a United States financial holding company of which Astra will retain a 90 per cent shareholding. 
 
Astra’s contribution to the holding company will be the issuance of 100 million pre-prospectus shares, which are to be held by a leading New York financial institution acting as custodian of the shares on behalf of the holding company.
 
MidOil USA will apply its many years of investment banking experience to hypothecate the holding company’s shareholding in Astra, in order to generate cash infusions into the holding company. 
 
Astra managing director Silvana De Cianni says the structure of this agreement is unique, in that MidOil USA will be generating substantial funds for Astra, yet at all times the share security that Astra has issued to the holding company shall always remain under the control of Astra. 
 
MidOil USA’s Vincent Crandon said the company believes in the Astra Resources business concept, and more importantly, believe its management exhibits exemplary skills and dedication in its pursuit of shareholder value and return.
 
“We look forward to working closely with Astra on present and future projects,” Mr Crandon said.
 
A further critical benefit noted by Astra CEO Dr Jaydeep Biswas is the provision by the holding company to Astra from MidOil USA’s financing activities, with monthly payments resulting in a steady revenue stream for the company over the five years of the agreement.
 
MidOil USA develops unique project finance programs that enable the completion of projects such as those that are currently being undertaken by Astra. 
 
“MidOil USA has a proven track record of providing its clients with the financing it needs in order to complete large scale projects, most recently signing a contract to invest over €3.75 billion in the construction of an international multimodal transport complex in the Lipetsk region of Russia,” Dr Biswas says.
 
“While Astra intends to use a substantial percentage of the money received to fund the global rollout of its T-Steel technology, other projects and acquisitions will receive funding as required as a result of the MidOil USA financing agreement. Astra will also use the funds to finance mining projects. ”
 
MidOil USA and its affiliated companies have over 40 years of experience in project finance, investment banking, venture capital, project management and corporate/organizational management.  It has a diversified funding portfolio including real estate, transportation and logistics, technology, maritime, and petroleum related sectors.

Astra Resources’ global portfolio includes gold and iron sands interests in Southeast Asia, coal mines in Africa, iron ore in India, carbon efficient businesses, mining housing developments in Queensland and the production of the high-strength T-Steel technology in Hungary.