1st Aug 2014 09:31
LONDON (Alliance News) - Titanium producer Kenmare Resources PLC Friday said it has agreed an amendment to the project financing terms on the Moma Mine in Mozambique, along with an extension to a corporate loan the company has from Absa Bank Ltd, providing it with greater flexibility and allowing it to preserve cash as it grapples with low product prices.
The amendment to the project financing means project lenders will receive payments under a cash sweep dependent on the level of cash generation at the mine. Previously, the lenders were to receive scheduled principal payments of senior debt and payments of interest and principal of subordinated debt.
Kenmare also said it has extended its USD20 million corporate loan from Absa, a subsidiary of Barclays, which means the loan will now mature on March 31 2016.
"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," said Kenmare Managing Director Michael Carvill.
Kenmare shares were flat at 14.5 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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