JOHANNESBURG (miningweekly.com) – TSX-and-Aim listed Avesoro Resources has completed the legal documentation required to amend its existing finance facilities with Nedbank and FirstRand Bank.
According to the amended terms, no further capital repayments are due until March 31, 2018, allowing the company to generate a prudent level of cash reserves before repayments commence, with the repayments scheduled to reflect the current life-of-mine production profile of the New Liberty gold mine.
“The new, improved terms of the facilities and revised repayment schedule will provide the company with financial stability as we continue to build on the substantial operational improvements we have made at New Liberty,” CEO Serhan Umurhan said in a statement on Monday.
The senior facility loan tenor has been extended by two years until January 31, 2022, while the tenor on the subordinated facility has been extended to the earlier of 12 months following the repayment of the senior facility or January 31, 2023.
The removal of the cash sweep mechanism that obliged the company to use surplus cash generated by New Liberty to accelerate loan repayments, will allow surplus cash generated to be spent on value enhancing activities including project expansion and exploration.