JOHANNESBURG (miningweekly.com) – TSX-listed Katanga Mining on Wednesday announced the execution of extended and increased loan facilities with Glencore Finance.
Katanga said the maturity date of its existing term loan facility agreement with Glencore Finance, which had been used to fund, in substantial part, the redemption of Katanga’s C$125-million 14% debentures on December 30, 2011, had been extended to January 1, 2021.
Further, the existing senior secured credit facility agreement between, besides others, a Katanga subsidiary – as borrower – Katanga and other Katanga subsidiaries as guarantors, and Glencore Finance had been increased and extended.
The senior facility had been increased to $2.97-billion, including the existing $515.5-million senior facility, plus accrued interest thereon, as well as all outstanding Glencore International prepayments to Katanga's subsidiary, Kamoto Copper Company (KCC) plus accumulated interest thereon.
Also included in the total amount of the amended senior facility was further funding of up to $50-million that would be made available according to the cash flow requirements of KCC, based on the approved budgets for its Phase 5 expansion and a related power project.
The maturity of the senior facility had also been extended to January 1, 2021, while all other material terms of the facility remained the same.
The drawdown of the increased senior facility remains subject to the satisfaction of certain conditions precedent.