Gunns still pursuing Tasmania pulp mill

(AAP) Forestry company Gunns Ltd says it continues to pursue financing and a joint venture equity partner for its controversial pulp mill project in Tasmania.

"Gunns is working towards a financing structure which will not require additional
equity to be raised from Gunns' shareholders," the company said in a statement,
released after the close of trading on the Australian stock exchange.
The company said financing for the project was expected to involve several
components, including project debt finance, export credit facilities and equipment
finance.
It said discussions with potential debt providers were at various stages, with some
indicating agreement in principle to facility terms, while discussions were ongoing
with other debt providers.
Gunns said it continues discussions with several potential equity parties, including
industry participants that have expressed interest in making a direct equity
investment in the mill project.
"It is Gunns' current intention that a joint venture equity partner will be invited
to take up to a 50 per cent interest in the mill project.
"However, whether this eventuates will depend on the outcome of negotiations between
the parties," it said.
The comments came as Gunns posted a record net profit for the 2008 financial year of
$64.5 million, down from its guidance on August 15 of about $67 million.
"The variance to guidance is attributable to the revaluation of financial
instruments, a non-operating expense," it said.