Irish miner Kenmare sees 120% increase in ore mined
Company earlier this week announced plans to cut debt through new share offering
The company defaulted on its debts earlier this year after failing to reach agreement with lenders on a deleveraging plan
Kenmare Resources, the mining company which announced plans on Thursday to cut its debt by $250 million through a share sale, said its ore mined in the first quarter rose 120 per cent as a result of improved power availability.
The company, one of the world’s largest producers of titanium minerals and zircon, said the amount of ore mined in the quarter rose to 7.06 million tonnes.
The trading update comes after a day after the company unveiled a major debt restructuring plan. The company defaulted on its debts earlier this year after failing to reach agreement with lenders on a deleveraging plan.
The plan includes selling $100 million by selling shares to King Ally Holdings, a chemicals trading company incorporated in the British Virgin Islands. The firm also aims to sell $100 million of new shares to the Sultanate of Oman, as well as $75 million to institutions.
The share offering will reduce its debt mountain by $250 million.