"Gunns is working towards a financing structure which will not require additional equity to be raised from Gunns' shareholders," the company said in a statemnt, 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.
