JSE-listed Northam Platinum has increased its existing revolving credit facilities (RCF) by R500-million, from R3-billion to R3.5-billion; and has also secured a new R500-million general banking facility (GBF).
The maturity date of Northam’s existing R1-billion RCF has been extended to match that
of its existing R2-billion RCF and both facilities, as well as the R500-million increase, have been combined into a single R3.5-billion RCF maturing on November 29, 2021.
The interest rate on the total RCF remains unchanged and the GBF will accrue interest at a variable rate of prime less 1.5%.
“The R1-billion increase in available facilities is in addition to the placement of R1.65-billion of domestic medium-term notes announced on April 16, and further strengthens Northam’s balance sheet,” Northam CE Paul Dunne commented in a statement issued on Friday.
“This additional funding flexibility will enable Northam to further return value to shareholders, in due course, through a repurchase of ordinary shares and/or a purchase of Zambezi preference shares.”
As previously reported by Mining Weekly Online, Northam expects to invest R2.3-billion in capital expenditure in its current financial year to June 30.