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Aurelia moves to reduce debt

4th August 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Aurelia Metals has unveiled plans to accelerate its debt reduction programme.

At the end of June, Aurelia held cash of about A$34.8-million while debt to mining major Glencore stood at A$109.61-million, of which A$37.57-million was senior debt and A$72.04-million was convertible debt.

Repayment of the debt was not due until the end of March next year, and no interest is payable until this date; however, at Aurelia’s request, Glencore has agreed to apply a discount to an early repayment to reflect the interest revenue forgone by the company.

Aurelia has now undertaken an initial A$10-million repayment in August, and has the option to continue making early repayments up until March next year.

The company told shareholders on Friday that reducing the debt remained a priority and the agreement mechanism provided flexibility in managing cash build over the next year.

Edited by Creamer Media Reporter

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