RNS Number:9303Z
Kenmare Resources PLC
18 June 2004


               KENMARE RESOURCES PLC ("Kenmare" or "the Company")


                      Moma Project Loan Agreements Signed


Kenmare is pleased to announce that the Company has today signed loan agreements
with a group of banks, which will, when effective, provide the Group with the
debt finance required for project implementation at its Moma Titanium Mineral
Sands Project in Mozambique. As announced earlier today, arrangements have also
been made for a Placing and Open Offer to raise the required equity funding for
the Project.


The total capital funding requirement of project implementation is US$348
million, of which US$269 million will be provided by way of borrowings (senior
(US$185 million plus Euro15 million) and subordinated (Euro55 million) debt, together
"the Loans"), and the balance outstanding will be provided by way of the Placing
and Open Offer (and if necessary a Supplemental Placing). Drawdown under the
Loan facilities is subject to a number of conditions precedent. One of the
conditions precedent that remains to be satisfied is that Kenmare must have
deposited funds in special accounts established by Kenmare (US$30 million in a
'Contingency Reserve Account' and US$49 million in a 'Shareholder Funding
Account', of which US$25 million must have been subsequently been spent on
developing the Moma Project before drawdown on the Loans) which are required to
be funded by equity of at least US$79 million net of costs. Kenmare intends to
satisfy this condition by completing the Placing and Open Offer (and if
necessary a Supplemental Placing).


The lenders are the African Development Bank, ABSA, a South African commercial
bank, the European Investment Bank, FMO, a Dutch development finance
institution, and KfW Bankengruppe, a German development finance institution.
Borrowings from the Lenders will be secured by effectively all of the assets of
Kenmare Moma Mining (Mauritius) Limited and Kenmare Moma Processing (Mauritius)
Limited (two wholly owned subsidiaries of Kenmare through which the interest in
the Moma Project is held ("the Project Companies")). Security includes a charge
over the Project Companies' accounts, and a pledge over each of the Contingency
Reserve Account and Shareholder Funding Account, and Kenmare has agreed to
guarantee until financial completion (that is, the completion of the
construction of the Moma Project to the point where it is operational in a
defined manner, expected to be achieved by the fourth quarter of 2007) all
amounts payable by the Project Companies to the Lenders under their loan
facilities.


Commenting on the loan signing, Mr. Charles Carvill, Chairman stated:


"Today's signing of the loan agreements represents the culmination of many
months of work by Kenmare's senior management and advisers. The agreement by the
group of Lenders to provide debt financing, is a very important step in the
process towards project implementation. Assuming that all of the conditions of
Project Financing are satisfied, and work under the EPC Contract is conducted on
schedule by the EPC Contractor, it is expected that the mine will be operational
during the second half of 2006."


Working Capital Position of the Kenmare Group


With the signing of the Loan Agreements, the related fees, with the resultant
impact on working capital as referred to in the announcement issued earlier
today have now been incurred.


For further information:



Kenmare Resources plc

Michael Carvill

Managing Director

Tel: +353-1-671 0411 or +353-87-674 0110

Tony McCluskey

Finance Director

Tel: +353-1-671 0411 or +353-87-674 0346

Murray Consultants

Conduit PR Ltd

Tom Byrne

Tel: +353 (1) 498 0300 or +353 (86) 810 4224

Leesa Peters

Tel: + 44 207 936 9095 Mob: + 44 (0)781 215 9885

                            www.kenmareresources.com

18 June, 2004




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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