TORONTO (miningweekly.com) – Molybdenum producer Thompson Creek Metals has terminated its $35-million credit facility, a move expected to improve financial flexibility, the company said on Friday.

The facility was originally set up in 2006, “when the company was in a substantially different financial position”.

As of January 29, Thompson Creek had cash and short-term investments of approximately $507-million and no debt, except for outstanding equipment loans of about $13-million.

The termination of the first lien revolving collateralised line of credit facility, effective February 2, will improve the company's flexibility by releasing the liens on the assets securing the facility, as well as eliminating the associated administrative and unused credit facility fees.

As of the termination date, there were no outstanding borrowings under this facility and Thompson Creek was in compliance with all the applicable covenants.

The company said it was assessing its long-term business requirements for other forms of credit.

The credit facility was originally negotiated as part of the 2006 financing for the acquisition of Thompson Creek USA, and then in August 2008, following the full repayment of the amounts outstanding under the original financing, was amended and increased from $22,5-million to $35-million.

Since the amendment, there have not been any borrowings under the facility and it was scheduled to mature on October 26, 2011.

Thompson Creek produces molybdenum from two mines, in the US and Canada.

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