Weatherly International PLC Loan repayment update (2760A)
December 27 2017 - 1:00AM
UK Regulatory
TIDMWTI
RNS Number : 2760A
Weatherly International PLC
27 December 2017
27 December 2017
This announcement includes release of insider information
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Rescheduling of repayment
Summary
Weatherly announces that debt repayments due to Orion Mine
Finance (Master) Fund I LP ("Orion") have been rescheduled; that
the Company has made one drawdown of US$1m on the uncommitted
US$10m loan since the last rescheduling on 31 October 2017; and
that it has certain copper and currency hedges in place out to June
2018.
Debt Financing and rescheduling of repayments
Weatherly has entered into a further amendment and restatement
agreement in relation to its existing facility with Orion (the
"Amendment and Restatement Agreement"). The first repayment of
Facility B, previously due on 31 December 2017 is now due on 31
March 2018 and payable quarterly until 31 December 2019 with a
final payment due on 28 February 2020. The Facility B Final
Maturity Date remains unchanged at 28 February 2020. Facility B
will be repayable in 8 equal repayments of capital and accrued
interest of US11.0m, with the balance of US$22.1 payable on 28
February 2020. Repayment of capital and accrued interest of
US$10.7m under Facilities C and D of the Amended Facility has been
deferred until 31 March 2018. Orion has agreed, effective until 31
December 2017, to limit its acceleration and enforcement rights on
the terms set out in the Amended Facility.
Loan draw downs and hedges
Weatherly advises it made a second drawdown of US$1m in early
November on the US$10 million uncommitted loan from Orion Mine
Finance announced on 28 July 2017 bringing the total drawdown to
US$3m. The drawdown was to accelerate the building of the leach
pads and to fund working capital requirements at Tschudi. To seek
to ensure the loan would be sufficient to meet the necessary
funding requirements the Company has hedged both copper and
currency out to June 2018. In addition to hedges previously
announced, Weatherly has 990 tonnes fixed in June at an average
copper price of US$6,880 per tonne, half of which is also fixed at
a N$ to US$ exchange rate of 14.15.
As previously advised on 28 April 2017 as a loan rescheduling
fee, Orion has the right (but not the obligation) to buy, if
available, up to 700 tonnes of unhedged cathode each month from
Weatherly until 30 April 2018 at a price of US$6000 per tonne.
Orion can only exercise its option to the extent of unhedged tonnes
produced in the month. So far this financial year Orion have not
elected to exercise their option.
The Company and its subsidiaries are unlikely to generate
sufficient surplus cash to meet all loan repayments when due,
particularly in the near term. The Company continues to positively
engage with Orion on the subject.
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 Adviser Contact: Stephen Allen / Bhavesh Patel
Broker Contact: Charlie Cryer
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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