PERTH (miningweekly.com) – ASX-listed Alita Resources, which went into administration earlier this year, has entered into a $70-million loan facility agreement with China Hydrogen Energy (CHE), while it mulls a deed of company arrangement (DOCA) with the Chinese group.
The funds from the loan facility agreement will be used to repay all outstanding senior secured debt facilities with creditor Galaxy Resources, as well as to fund working capital.
Galaxy in September acquired a A$32.5-million senior secured loan facility owed by Alita, and proposed its own DOCA to the administrators in an effort to gain ownership of Alita’s lithium assets, which includes the Bald Hill mine.
Instead, the administrators have advised the company that a third-party proposal had been received which provided Alita with the funding required to repay the facility.
Galaxy on Monday said that it would not amend the offer terms included in its proposed DOCA, with the lithium company saying that the administrators had now in full repaid the A$32.5-million senior secured loan facility.
The loan facility agreement between Alita and CHE will become repayable on the earlier of either two business days after Alita or its administrators are funded to repay the amounts under the terms of the DOCA, or February 13, 2020, or if the CHE DOCA proposal was not approved at the second meeting of creditors seven business days after the date of the meeting.
Alita Resources, previously known as Alliance Mineral Assets, owns the Bald Hill spodumene mine in Western Australia, and has a 15% interest in Cowan Lithium, which owns the Cowan lithium project, also in Western Australia.