11th Nov 2013 11:35
LONDON (Alliance News) - Weatherly International PLC Monday said it has completed the first drawdown of tranche B of its Tschudi loan facility, which was provided by Orion Mine Finance for the development of Weatherly's Tschudi copper project.
The Namibia-focused copper mining company said the total USD80 million tranche B is repayable over six and a half years, with an initial two-year repayment holiday, at an interest rate of 7% over LIBOR.
Weatherly signed a USD91 million loan facility deal with Orion in September, giving it full financing for Tschudi. The total includes the secured loan of USD80 million, a project cost overrun facility of USD8 million, and a USD3 million payment it received in October to repay an outstanding loan that its subsidiary Ongopolo Mining had with Louis Dreyfus Commodities.
Tschudi is an open pit copper mine, with 11 years mine life, producing 17,000 tonnes of copper cathode per year, at life-of-mine cash cost of USD4,267 per tonne of copper.
The company said it is completing a range of operations in order to achieve first copper production from Tschudi in the second quarter 2015.
Weatherly International shares were down 0.5% to 3.98 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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