JOHANNESBURG (miningweekly.com) – Platinum group metals mining and marketing company Implats has strengthened its access to credit and refreshed approvals for intercompany loans.
In addition, the board has authorised the Johannesburg-listed company to give financial assistance to inter-related companies, as well as financial assistance under its long-term incentive plan.
Implats’ stock exchange news service announcement was made in terms of Section 45(5) of the Companies Act 71 of 2008, which refers to financial assistance in the form of money lending, loan guaranteeing and securing of any debt or obligation.
Earlier this year, Implats finalised the process of refinancing the bridge loan facility used to fund the acquisition of North American Palladium (NAP) as well as NAP’s existing working capital facilities. This included the conclusion of an Implats-guaranteed $275 000 000 term and revolving credit facility by NAP, which has been renamed Impala Canada.
Implats has now amended its rand revolving credit facility to provide access to additional credit facilities of up to R2-billion under the same facility agreement, should the need for additional liquidity arise in the next 12 months.
Inter-company loans of R5 316 283 530 to Impala Platinum, R199 679 283 to Gazelle Platinum, and R11 345 697 296 to Impala Holdings have been refreshed.
In addition, financial assistance in the form of inter-company loans, guarantees to Eskom and the Department of Mineral Resources, and cash management arrangements have been authorised over the next six months.
The board has also authorised financial assistance to a maximum R20-million under the company’s long-term incentive plan adopted in 2012.
Shareholders have been advised that the total value of the financial assistance will exceed one-tenth of 1% of the company's net worth as at June 4, Mining Weekly can report.