Kenmare agrees refinancing for Mozambique mine
Project lenders will now receive payments under a so-called cash sweep dependent
The refinancing will allow Kenmare Resources to conserve cash and will provide greater flexibility during the current period of low product prices. Picture taken September 21, 2012. Photograph: Neil Chatterjee/Reuters
Titanium mineral producer Kenmare Resources has agreed an amendment to the project financing terms for the Moma Mine in Mozambique, as well as an extension to the corporate loan provided by Absa Bank, a member of Barclays.
The project financing amendment removes the requirement to make scheduled principal payments of senior debt and payments of interest and principal of subordinated debt falling due in August 2014, February 2015 and August 2015. Instead, project lenders will receive payments under a cash sweep dependent on the level of cash generation at the mine. Simultaneously, Kenmare has agreed with Absa an extension to Absa’s $20 million corporate loan, which will now mature on March 31st 2016.
Managing director Michael Carvill commented: “We are pleased to have concluded this agreement with the project lenders and Absa which will enable us to conserve cash and provide greater flexibility during the current period of low product prices.”