JOHANNESBURG (miningweekly.com) - London-listed Kenmare Resources said on Friday it had aligned the structure of its project financing to that of the projected cash flows of its Moma mine, in Mozambique.
The titanium minerals producer restructured the financing with its lenders to remove the requirement to repay all deferred subordinated debt by August 2015, and rescheduled all deferred subordinated debt that was unpaid as of July 31, 2015.
“This restructuring has been designed to enable the project companies to service the project debt in a sustainable manner and, in due course, to pay down the debt on an accelerated basis from available cash while making distributions to Kenmare,” said Kenmare MD Michael Carvill.
He explained that the previous terms outlined that if cash was insufficient to pay interest and scheduled principal on the subordinated loans on a payment date, the interest would be capitalised and both interest and scheduled principal would be deferred and become payable on the next semi-annual payment date.
In July next year, 50% of the deferred subordinated debt would be amortised in nine equal semi-annual instalments between August 2015 and August 2019.
The balance would be repaid in one instalment on August 1, 2019.
The deferred subordinated debt and accrued interest as at December 2013 was $143.3-million and the weighted average interest rate was 10.16%.
The total subordinated debt was $247.3-million and total senior debt was $94.6-million.