Dual-listed Buffalo Coal’s wholly-owned subsidiary Buffalo Coal Dundee (BCD) has entered into and received approval from the South African Reserve Bank for a secured credit facility agreement dated November 7, 2022, and an addendum to the facility agreement dated December 29, 2022, with Ikwezi Mining, an affiliate of the company’s majority shareholder Belvedere Resources.
Pursuant to the credit agreement, the lender will make a credit facility available to BCD in the aggregate principal amount of $30-million, which amount may be drawn in up to ten draws under the credit agreement.
The company intends to use the initial facility advance under the credit agreement to repay amounts owing to Belvedere under the third amended and restated loan agreement between the company and Resource Capital Fund, which was assumed by Belvedere.
The remaining amounts available to BCD under the credit agreement will be used for general working capital purposes.
Buffalo Coal is a coal producer in South Africa. It holds a majority interest in two operating mines through its 100% interest in BCD, a South African company which has a 70% interest in Zinoju Coal.
Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East anthracite mine and the Balgray and North Adit anthracite projects in South Africa.