New financing arrangements with Standard Bank of South Africa
African Minerals Limited (AIM: AMI) is pleased to announce that Standard Bank of South Africa Limited (“Standard Bank”) has informed the Company that final credit committee approval has been received for the establishment of two credit facilities as follows:
- Establishment of $250m secured loan facility, structured to be capable of being increased to fund subsequent expansion to 35mtpa, subject to further approvals
- Establishment of corporate level revolving credit facility of $100m for general corporate purposes, replacing $100m amortising standby facility of which $80m is currently outstanding, providing $20m of additional liquidity
- Facilities, both arranged with Standard Bank, provide significant headroom and flexibility at corporate and operating levels
Secured Loan Facility: $250m secured loan facility, at the operating company level, to provide greater working capital flexibility during the project ramp up period. This facility is structured to allow it to be increased to fund further expansion of the project in due course, subject to additional credit committee approvals.
Revolving Credit Facility: $100m corporate level facility, replacing the existing $100m amortising standby facility (of which $80m remains outstanding), thus providing $20m of additional liquidity at the Group level.
Miguel Perry, CFO of African Minerals, commented:
“I am delighted to report that the facilities that we outlined in December have now been approved, and am especially pleased that Standard Bank continues to be a cornerstone lender. These facilities provide us with incremental financial flexibility through the project ramp up period, as well as a potential source of funding for the next phase of our expansion to 35 mtpa.”
African Minerals
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