Sierra Rutile Limited Sierra Rutile: Renewal of Nedbank Debt Facilities (3218R)
March 08 2016 - 1:00AM
UK Regulatory
TIDMSRX
RNS Number : 3218R
Sierra Rutile Limited
08 March 2016
Sierra Rutile Limited
Renewal of Nedbank Debt Facilities
London, UK, 8 March 2016: Sierra Rutile Limited (AIM: SRX)
("Sierra Rutile") is pleased to announce that it has extended the
maturity dates on its existing US$20 million working capital
facility (the "Working Capital Facility") and US$15 million standby
loan facility (the "Standby Facility") with Nedbank Limited, acting
through its London Branch ("Nedbank"), for a further 14 months
until 30 May 2017.
The Working Capital Facility continues to carry an interest rate
of LIBOR plus 5% and has an arrangement fee of 1% of the facility
amount. The Standby Facility continues to carry an interest rate of
LIBOR plus 2%, has no arrangement or commitment fees, and has an
expanded purpose beyond funding the construction of the Gangama Dry
mine to include general corporate purposes. The Standby Facility is
secured by cash collateral to be provided by Pala Investments on
the same terms as previously announced on 24 September 2015.
Sierra Rutile has also received confirmation of formal credit
approval from Nedbank for a hedging facility to hedge its fuel
supplies and interest rates exposure and is in the process of
finalising documentation for the hedging facility. Once the hedging
facility is in place, this would allow Sierra Rutile to insulate
itself from future increases in fuel costs and interest rates.
John Sisay, Sierra Rutile's Chief Executive Officer,
commented:
"On behalf of Sierra Rutile, I would like to thank the Nedbank
mining finance team for the continued support which it has provided
to us over the years. We are pleased to strengthen this partnership
with Nedbank as Sierra Rutile continues to execute on its plan to
build a flexible and capital efficient business focused on
delivering industry leading shareholder returns. The extension of
the Nedbank facilities provides further financial flexibility to
Sierra Rutile during the ramp up stage of the Gangama Dry mine and
also increases the flexibility to manage our working capital
requirements more efficiently into 2017."
Nivaash Singh, Nedbank CIB international mining finance head,
commented:
"We are pleased to continue this banking partnership with Sierra
Rutile with the extension of the existing Working Capital Facility
and Standby Facility, and the approval for a hedging facility.
Nedbank is keen to back the right projects in the right
jurisdictions in Africa that have strong management teams, and well
run operations. We have been pleased with the strong management
team at Sierra Rutile, backed by a very supportive long-term
shareholder base led by Pala Investments, and we remain excited to
support Sierra Rutile as it continues to realise the full potential
of Sierra Rutile's world-class asset in Sierra Leone."
For Further Information:
Sierra Rutile Limited
Matthew Hird, Chief Financial
Officer
John Nagulendran, Company +44 (0)20
Secretary 7074 1800
Investec Bank
Nominated Adviser and Joint
Corporate Broker
Chris Sim / George Price +44 (0)20
/ Jeremy Ellis 7597 4000
RBC Capital Markets
Joint Corporate Broker +44 (0)20
Jonny Hardy 7653 4000
Numis Securities Limited
Joint Corporate Broker
John Prior / James Black +44 (0)20
/ Paul Gillam 7260 1000
Kreab
Marc Cohen / Christina +44 (0)20
Clark / Fiona Cumberland 7074 1800
About Sierra Rutile Limited
Sierra Rutile produces titanium feedstock industrial minerals
(primarily rutile, with some associated ilmenite), as well as
smaller quantities of zircon. Sierra Rutile's mines, located in the
south west of Sierra Leone, are based on one of the largest natural
rutile deposits in the world, with a JORC-Compliant Mineral
Resource for measured, indicated and inferred resources for the
Sierra Rutile mine of over 895 million tonnes (as at 30 September
2014).
www.sierra-rutile.com
This information is provided by RNS
The company news service from the London Stock Exchange
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