Dual-listed Alphamin Resources’ 80.75% subsidiary, Alphamin Bisie Mining has exercised its previously announced option with senior lenders to defer debt capital repayments.
As announced in October 2019, the company’s lender consortium granted an option to ABM to elect to amend quarterly debt capital instalments of about $8.17-million starting at the end of March, to a deferred monthly capital instalment schedule.
The revised debt instalment schedule (principal and interest) is ongoing monthly payments of $1.3-million (interest only) to the end of June; and from the end of July, a monthly fixed debt capital instalment of about $2.72-million over 36 months, plus interest (initially $1.3-million monthly).
The result is a reduction of about $16.34-million in debt capital repayments for the 2020 financial year.
The exercise of the option offers Alphamin the opportunity to strengthen its working capital position prior to the start of debt capital repayments, the company said.
A cash fee of $400 000 was paid upon the exercise of the option.
The company also noted that the recent coronavirus outbreak is having an impact on global commodity prices. The London Metal Exchange tin price has recently ranged between $15 000/t and $17 000/t compared to the company’s National Instrument 43-101 Technical Report which assumed a price of $17 000/t.
The company noted that it continues to focus on achieving its full production targets at the lowest possible unit cost.