IDC is a national development finance institution established to promote economic growth and industrial development in South Africa. Its mandate includes the rest of the Africa continent and it operates in a broad spectrum of industries.

Nevsun stated that a number of other potential lenders have submitted indicative terms for the remaining funds required and the project owners are in the process of evaluating these proposals. These additional lenders are at various stages of internal approvals and the Nevsun-ENAMCO venture said it would publicly release details of the finance group once the entire group of lenders has been established and commitments are in place.

Nevsun said the project is advancing on plan, and based on the current finance strategy, there is sufficient cash and lines of credit to fully finance the project. Nevsun does not expect to issue any additional equity.

Ground clearing at the mine site began in August 2008 and construction of a village suitable for housing 400 people started in September, according to Nevsun, which also noted that critical long lead items (such as ball and SAG mills) were ordered in early 2008 for installation during late 2009; equipment pricing has been fixed.

The targeted commissioning is to take place in the first quarter of 2010 and production in the second quarter, subject to no delays in supply of materials or finance.