Development drilling on the Woodside-operated Chinguetti field is currently underway. First oil is scheduled for the end of the first quarter 2006.

“The terms and conditions of the loan facility are typical of large-scale financings of international resources projects,” Hardman said in a statement.

“In addition, the facility includes political risk insurance cover for the benefit of the lenders, which has been obtained in the international market on favourable terms.”

The loan has been fully underwritten by ANZ which will coordinate the loan’s syndication.

Several leading banks with a demonstrated capacity for international project financings of this kind have already expressed their interest in participating in the syndication, according to Hardman chairman Alan Burns.

“This is a major milestone for the Company and Mauritania,” Burns said.

“The ANZ-led project loan facility underpins the company’s transition to the status of a significant oil producer. This is a frontier financing not only in the sense that it is a new step for Hardman, but also because it is the first large-scale project financing for the country of Mauritania.”