14th Feb 2014 08:38
LONDON (Alliance News) - Kenmare Resources PLC saw its shares rise Friday after it agreed a restructuring of the project financing for its Moma Mine in Mozambique.
In a statement, the titanium producer said the deal with its lenders has been designed in a way that will allow Kenmare's project subsidiaries to service the debt in a sustainable manner, and, in due course, accelerate pay down of the debt from available cash while also making distributions to the parent company.
The deal also removes the requirement to repay all deferred subordinated debt by August 1, 2015, and instead reschedules all deferred subordinated debt that is unpaid as of July 31, 2015, it said.
"We are extremely pleased to have concluded this milestone restructuring with the co-operation of the project lenders. This restructuring better aligns the terms of the project financing with the projected cash flows of the Moma Mine and offers a sustainable solution for both the Company and our lenders," Managing Directors Michael Carvill said in a statement.
Last month, Kenmare said it had further increased production at its Moma Mine during the fourth quarter of 2013. Production for the year as a whole was up 22%. It is now expanding the plant at the site to further boost output and drive down unit costs.
Kenmare shares were up 3.5% at 16.5 pence early Friday, one of the biggest gains on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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