19th Aug 2014 10:27
LONDON (Alliance News) - Beacon Hill Resources PLC Tuesday reported a delay in the approval of its proposed USD20.0 million senior debt facility, citing circumstances beyond the company's control.
Beacon Hill still expects final credit approval during the third quarter, subject to implementation of a rolling stock sub-lease and any other final conditions imposed by the new senior lender.
Beacon Hill said it "remains committed to achieve drawdown of the facility during the fourth quarter."
The company cautioned that shareholders should note there is no certainty that such debt shall be forthcoming or any re-financing will be successful.
Beacon Hill is working towards completion of the USD20 million senior debt capital expenditure facility for the expansion of the Minas Moatize wash plant to 3.2 million tons per annum from an existing 1.8mtpa.
On a brighter note, Beacon Hill said that Minas Moatize Ltda has received a VAT refund payment totaling MZN43 million, about USD1.4 million, from the government of Mozambique. However, Beacon Hill said that it may seek to raise additional working capital to ensure it remains adequately capitalised. It added this "will likely be a condition precedent of any new senior debt financing approval."
Beacon Hill shares were Tuesday quoted down 13% at 0.340 pence.
By Samuel Agini; [email protected]; @samuelagini
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