Weatherly International PLC Rescheduling of repayment- agreement concluded (6244D)
April 28 2017 - 1:01AM
UK Regulatory
TIDMWTI
RNS Number : 6244D
Weatherly International PLC
28 April 2017
28 April 2017
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Rescheduling of repayment- agreement concluded
Summary
Further to the announcement of 27 April 2017 Weatherly announces
that it has formally concluded a further amendment and restatement
agreement with Orion Mine Finance (Master) Fund I LP ("Orion") in
relation to the facility agreement between Orion and the Company's
subsidiary Ongopolo Mining Limited (the "Amended Facility"). Under
the Amended Facility, the first repayment of Facility B Loans has
been deferred to 30 June 2017. The Facility B Final Maturity Date
remains unchanged at 29 February 2020, and each Facility B
repayment will be increased accordingly. The repayment schedule of
Facilities C and D has been deferred to 30 June 2017.
Debt Financing and rescheduling of repayments
Weatherly announces that, following discussions with Orion, it
has entered into a further amendment and restatement agreement with
Orion. Under the Amended Facility, the first repayment of Facility
B Loans has been deferred to 30 June 2017 and Orion has agreed,
effective until 30 June 2017, to limit its acceleration and
enforcement rights on the terms set out in the Amended Facility.
The Facility B Final Maturity Date remains unchanged at 29 February
2020, and each Facility B repayment will be increased so that the
Facility B Loans will be repayable in 12 equal repayments.
As a loan rescheduling fee, Orion will receive, inter alia, the
right to buy 700 tonnes of cathode each month from Ongopolo Mining
Limited for the period from 1 May 2017 to 30 April 2018 at a price
of US$6000 per tonne (the "Updated Offtake Terms").
The repayment of the US$8.6 milllion lent under Facilities C and
D of the Amended Facility has been deferred until 30 June 2017.
If copper prices remain at current levels it is unlikely that
the Company and its subsidiaries will generate sufficient surplus
cash to meet all loan repayments under the Amended Facility when
due and planned capital expenditure to support achieving production
and operating cost targets. The Company continues to positively
engage with Orion on the subject.
About Orion and Related Party Disclosure
Orion is a related party of the Company by virtue of being a
substantial shareholder in the Company and consequently the entry
into of the Amended Facility and the Updated Offtake Terms are
deemed to be a related party transaction under the AIM Rules for
Companies. The independent directors of Weatherly (being all of the
directors other than Edwin Bennett, by virtue of his association
with Orion) consider, having consulted with Weatherly's nominated
adviser, RFC Ambrian, that the terms of the Amended Facility and
the Updated Offtake Terms are fair and reasonable insofar as
Weatherly's shareholders are concerned.
For further information please contact:
Weatherly International plc +44 (0) 1707 800 774
Craig Thomas, Chief Executive Officer
Kevin Ellis, CFO and Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Nominated Advisor Contact: Stephen Allen / Bhavesh Patel
Broker Contact: Kim Eckhof
Blytheweigh +44 (0) 20 7138 3204
(Financial PR)
Tim Blythe / Camilla Horsfall / Nick Elwes
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are one operating
open pit copper mine called Tschudi and two underground copper
projects called Otjihase and Matchless.
This information is provided by RNS
The company news service from the London Stock Exchange
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