Kenmare gets new extension deadline to restructure debt

Irish titanium and zircon miner Kenmare Resources has said it is making progress in putting together a revised finance agreement that will include a new liquidity line.

The exploration company, which operates the Moma Titanium Minerals Mine in northern Mozambique, has announced another extension of a deadline to finance a deal with lenders on restructuring its debt.

Kenmare last month announced a deadline extension until the end of February. In a statement issued on Thursday however, the company said it had agreed with its project enders and Absa Bank to extend the date for delivery of a budget till March 31st.

The company said the revised finance agreement will likely include a new liquidity line that would be able to be drawn on service working capital and other requirements as necessary.

Kenmare said lenders continue to be supportive of its business and remain engaged in productive discussions with the group’s management.

In a trading update issued last month, the company said its bank loans amounted to $337.3 million at the end of last year, down from $355.2 million at the end of 2013.

"We appreciate the continued strong support that project lenders and Absa have shown to Kenmare and the Moma Mine during the current period of low product prices. We look forward to concluding the terms and announcing the final agreement in the coming weeks," said Kenmare managing director Michael Carvill.