TiZir partners foot bondholder bill
PERTH (miningweekly.com) – ASX-listed Mineral Deposits Limited (MDL) and its partner Eramet have committed to A$6-million in funding to the jointly owned subsidiary TiZir, in order to meet a payment to bondholders.
In December, the TiZir bond agreement was amended following an earlier bondholder meeting. One of the conditions of the amendment was that TiZir would be required to extend the early bird fee of 2.75% to all bondholders.
MDL reported this week that Eramet had agreed to fund the A$6-million in full, in the form of an additional subordinated loan to TiZir, as part of a 2011 shareholders agreement entered into by the joint venture (JV) parties.
MDL would be required to repay its half of the A$6-million loan by the end of December this year. If the repayment was not met, Eramet would have the option to increase its share of the JV.
Meanwhile, MDL noted that JV operations continued to perform well after the TiZir furnace was restarted on December 22, following a three-month shutdown to complete a facility upgrade.
Chloride slag production started this week, with slag tapping now occurring routinely.
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