Kenmare to announce ambitious financial restructuring plan
Troubled iron and titanium ore miner said to be ready to raise €265m
Mining challenges: Kenmare defaulted on its debts earlier this year after failing to reach an agreement with its lenders on a deleveraging plan. Photograph: Thinkstock
Kenmare Resources is reportedly due to announce a large-scale financial restructuring plan that could involve raising some $300 million (€265 million) at the troubled explorer.
The company defaulted on its debts earlier this year after failing to reach an agreement with its lenders on a deleveraging plan.
It was reported on Wednesday night that Kenmare, which focuses on iron and titanium ore ilmenite, was ready to raise some $100 million by selling stock to a company based in the British Virgin Islands. Sky News also reported that Mozambique-focused Kenmare would source the same amount from Oman’s sovereign wealth fund and generate a further $100 million through a placing aimed at existing shareholders.
A company spokesman declined to comment on the report, which also flagged a debt-for-equity swap with Kenmare’s creditors.
Kenmare’s market capitalisation stood at just shy of €28 million on the Irish Stock Exchange when markets closed yesterday.