African Minerals secures $350m credit facilities from Standard Bank SA
African Minerals today announced that final credit committee approvals have been received from Standard Bank South Africa for the establishment of two credit facilities worth $250-million and $100-million respectively.
A $250-million secured loan facility would provide greater working capital flexibility during project ramp-up periods and was structured in such a way that it could be increased to fund further the expansion of the iron-ore mining company’s projects, subject to additional credit committee approvals.
A $100-million revolving credit facility would replace the existing $100-million amortising standby facility – of which $80-million remained outstanding – thus providing $20-million of additional liquidity for African Minerals.
“I am delighted to report that the facilities 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-million tons a year,” African Minerals CFO Miguel Perry said in a statement.
The Tonkolili iron-ore project is expected to produce 20-million tons a year by the second quarter of this year.
The project would then be expanded to produce up to 35-million tons a year of high-grade hematite concentrate.
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