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Mirabela gets extension for financing documents

Mirabela gets extension for financing documents

Photo by Bloomberg

11th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Embattled nickel miner Mirabela Nickel has gained an extension to the deadline to nail down documents relating to a $45-million interim financing facility.

The financing facility was agreed upon with a consortium of holders of the company’s $395-million senior unsecured notes, which were due in April 2018, and would be used by Mirabela to provide liquidity while the company progresses its restructuring.

Mirabela and its lenders have now extended the deadline to perfect the Brazilian collateral documents until February 12, while also working to execute a definitive agreement to restructure and recapitalise the company by this date.

No binding agreements for the restructuring of the company’s debts have been concluded.

The continued decline in the nickel price has forced Mirabela and its stakeholders to actively discuss potential ways of restructuring the company’s debt; however, the company has told shareholders that this was a complex process requiring dealings across legal, financial, commercial and operational frameworks in three jurisdictions, resulting in a high level of execution risk. 


Owing to the challenging nickel price environment, the company has also implemented a reduced mining rate operational plan with mining material movement expected to be restricted to approximately 25-million tonnes for 2014.

In January, Mirabela chairperson Geoff Handley and directors Colin Steyn and Peter Nicholson announced their resignation from the board, with Ian McCubbing appointed as nonexecutive chairperson.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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