4th Jan 2019 09:36
LONDON (Alliance News) - Central Asia Metals Ltd on Friday announced it has consolidated all of its debt into one facility.
At the time of its USD402.5 million takeover of the Sasa zinc-lead mine in Macedonia in November 2017, Central Asia Metals said it inherited USD67 million of debt.
On top of that, it borrowed USD130 million from offtake partner Traxys, giving it gross debt of USD187 million.
Since then, it has made USD36 million of repayments, though it increased the size of its facility from Traxys to USD151 million.
This new facility from Traxys has been used to fully repay the debt taken on with the Sasa acquisition as well as a facility with a local bank.
The Traxys facility has interest of 4.75% plus one-month US Libor, and it will be repaid, Central Asia Metals said, within four years.
Chief Executive Nigel Robinson commented: "We are pleased to have consolidated our borrowings into the one corporate debt facility.
"Removal of the Sasa debt will enable Central Asia Metals to restructure and simplify its Sasa corporate structure, which is expected to be completed in the first quarter of 2019."
Shares were 3.1% higher on Friday morning at 219.50 pence each.
Related Shares:
Central Asia Metals