Sierra Rutile replays €13M debt to Sierra Leone ahead of schedule
Sierra Rutile has repaid €13 million of its subsidiary’s loan from the government of Sierra Leone following a successful placing to raise £11.4 million.
The loan was taken out for the restart of Sierra Rutile’s mine in 2005 and was funded under a European Commission programme.
As a result of the equity placing and early repayment, the company’s financial position has improved as net debt stands at less than US$10 million, positioning it well for the development of its business in Sierra Leone.
“The financial flexibility we now have positions us well as we continue to execute our strategic review. The mineral sands market remains strong with a positive outlook and I look forward to updating shareholders in due course on our progress,” said chief executive of Sierra Rutile John Sisay.
As part of its ongoing strategic review, Sierra Rutile is evaluating options for the improvement of its operational performance and is assessing the potential to extract rare earths from its mine tailings.
Following the repayment, €23.7 million of principle remains due on the loan with the next principal repayment due in June 2013. Subsequently the interest repayments in 2012 will now be lower by €0.7 million.
Culled From UK Financial News
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