8th Mar 2016 07:00
Sierra Rutile Limited
Renewal of Nedbank Debt Facilities
London, UK, 8 March 2016: Sierra Rutile Limited (AIM: SRX) ("Sierra Rutile") is pleased to announce that it has extended the maturity dates on its existing US$20 million working capital facility (the "Working Capital Facility") and US$15 million standby loan facility (the "Standby Facility") with Nedbank Limited, acting through its London Branch ("Nedbank"), for a further 14 months until 30 May 2017.
The Working Capital Facility continues to carry an interest rate of LIBOR plus 5% and has an arrangement fee of 1% of the facility amount. The Standby Facility continues to carry an interest rate of LIBOR plus 2%, has no arrangement or commitment fees, and has an expanded purpose beyond funding the construction of the Gangama Dry mine to include general corporate purposes. The Standby Facility is secured by cash collateral to be provided by Pala Investments on the same terms as previously announced on 24 September 2015.
Sierra Rutile has also received confirmation of formal credit approval from Nedbank for a hedging facility to hedge its fuel supplies and interest rates exposure and is in the process of finalising documentation for the hedging facility. Once the hedging facility is in place, this would allow Sierra Rutile to insulate itself from future increases in fuel costs and interest rates.
John Sisay, Sierra Rutile's Chief Executive Officer, commented:
"On behalf of Sierra Rutile, I would like to thank the Nedbank mining finance team for the continued support which it has provided to us over the years. We are pleased to strengthen this partnership with Nedbank as Sierra Rutile continues to execute on its plan to build a flexible and capital efficient business focused on delivering industry leading shareholder returns. The extension of the Nedbank facilities provides further financial flexibility to Sierra Rutile during the ramp up stage of the Gangama Dry mine and also increases the flexibility to manage our working capital requirements more efficiently into 2017."
Nivaash Singh, Nedbank CIB international mining finance head, commented:
"We are pleased to continue this banking partnership with Sierra Rutile with the extension of the existing Working Capital Facility and Standby Facility, and the approval for a hedging facility. Nedbank is keen to back the right projects in the right jurisdictions in Africa that have strong management teams, and well run operations. We have been pleased with the strong management team at Sierra Rutile, backed by a very supportive long-term shareholder base led by Pala Investments, and we remain excited to support Sierra Rutile as it continues to realise the full potential of Sierra Rutile's world-class asset in Sierra Leone."
For Further Information:
Sierra Rutile Limited Matthew Hird, Chief Financial Officer John Nagulendran, Company Secretary
|
+44 (0)20 7074 1800
|
Investec Bank Nominated Adviser and Joint Corporate Broker Chris Sim / George Price / Jeremy Ellis
|
+44 (0)20 7597 4000 |
RBC Capital Markets Joint Corporate Broker Jonny Hardy
|
+44 (0)20 7653 4000 |
Numis Securities Limited Joint Corporate Broker John Prior / James Black / Paul Gillam
|
+44 (0)20 7260 1000
|
Kreab Marc Cohen / Christina Clark / Fiona Cumberland |
+44 (0)20 7074 1800
|
About Sierra Rutile Limited
Sierra Rutile produces titanium feedstock industrial minerals (primarily rutile, with some associated ilmenite), as well as smaller quantities of zircon. Sierra Rutile's mines, located in the south west of Sierra Leone, are based on one of the largest natural rutile deposits in the world, with a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 895 million tonnes (as at 30 September 2014).
www.sierra-rutile.com
Related Shares:
SRX.L