Gunns continues search for financial backer

Updated October 31 2012 - 1:18pm, first published February 26 2009 - 4:04am

Gunns $2 billion pulp mill project was being maintained in ``ready status'' as the company continues its search for a financial backer.Managing director John Gay said the company was in negotiations with a number of parties who had expressed interest in becoming a joint venture partner.``We are expecting to reach agreement on key terms with a partner by the end of April 2009,'' Mr Gay said in a statement to the Australian Stock Exchange.``We believe there is strategic value in introducing a partner with a strong industry position to the project, including bringing construction, operational and marketing experience.''Mr Gay said the primary source of funding for the development would be a project finance debt facility, which is being coordinated by a European bank.``This is a project that has become even more crucial for the Tasmanian and Australian economies as the impact of the global financial crisis is felt on employment,'' Mr Gay said.``It is a project which will provide over 2,000 jobs during a two-year construction period and 1,600 new jobs during operation.``At a time when many companies are making workers redundant, we are one of the few with a major job creation project being progressed.''Mr Gay said the mill project was being maintained in a ready status to proceed on achieving financial close.More news and reaction in tomorrow's edition of The Examiner.

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