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(Australia) --July 23, 2008--Forestry firm Gunns' controversial Tasmanian pulp mill project could still go ahead after the company said it was on the verge of sealing a new funding deal with a syndicate of European bankers.

The company confirmed to Business Spectator that European banks were moving to invest in the $2 billion Tamar Valley project, despite the hesitance of local lenders under pressure from environmental campaigners.

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