PERTH (miningweekly.com) – The shareholders of the Karara iron-ore project, in Western Australia, have secured a $1.5-billion refinancing facility for the project.
ASX-listed Gindalbie Metals, which holds a 47.84% share in the project, reported on Monday that the refinancing facility had been used to repay all outstanding amounts of syndicated facilities, which were due by 2020.
Gindalbie noted that the refinancing facility had a longer term than the previous syndicated facilities, and would be repaid in accordance with a fixed schedule, which would continue until 2030.
Under the new and varied guarantee and share mortgage securities given to the lenders, Gindalbie’s liability would be limited to a claim for ownership of Gindalbie’s share in the Karara project, by exercise of the mortgagee rights.
However, subject to shareholder approval, Gindalbie could have a contingent liability under the refinancing facility by reason of an indemnity given to Anshan Iron and Steel Group Corporation, so that if there was a loss after the exercise of the security, Anshan could seek to recover that loss from Gindalbie.
Gindalbie and its joint venture partner Ansteel have been working towards a funding solution for the Karara project, as iron-ore prices continued to decline and the mine, in Western Australia, struggled to meet its nameplate capacity of eight-million tonnes a year.