Weatherly International PLC Rescheduling of repayment (5212J)
April 03 2018 - 1:01AM
UK Regulatory
TIDMWTI
RNS Number : 5212J
Weatherly International PLC
03 April 2018
3 April 2018
This announcement includes release of inside information
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Rescheduling of repayment
Weatherly announces that debt repayments due to Orion Mine
Finance (Master) Fund I LP ("Orion") have been rescheduled.
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 March 2018 is now due on 30 June
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 US$14.1m.
Repayment of capital and accrued interest of US$11.0m under
Facilities C and D of the Amended Facility has been deferred until
30 June 2018. Orion has agreed, effective until 30 June 2018, to
limit its acceleration and enforcement rights on the terms set out
in the Amended Facility.
In addition. the Amendment and Restatement Agreement introduces
a new clause that gives Orion approval rights on expenditure
outside of the Board's comprehensive agreed budget and includes
several amendments to existing clauses that, over time, will result
in the Company having reduced flexibility on cash generated from
copper sold to Orion, the Company's sole customer, via a cash sweep
mechanism and tightened offtake credit arrangements.
Orion is a related party of the Company by virtue of Orion being
a substantial shareholder in the Company and consequently the
execution of the Amendment and Restatement Agreement is deemed to
be a related party transaction under the AIM Rules for Companies.
All directors of the Company are independent of Orion and consider,
having consulted with Weatherly's nominated adviser, Strand Hanson,
that the terms of the Amendment and Restatement Agreement are fair
and reasonable insofar as Weatherly's shareholders are
concerned.
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 has not
elected to exercise their option.
Loan draw downs and hedges
Weatherly advises that it has made no further drawdown on the
US$10 million uncommitted loan from Orion announced on 28 July
2017, with US$3 million drawn down under that facility to date, and
no further hedges of copper or currency.
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, CEO
Kevin Ellis, CFO & Company Secretary
Strand Hanson Limited +44 (0) 20 7409 3494
(Nominated Adviser & Broker)
Rory Murphy / James Dance / Jack Botros
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are the Tschudi
Mine and the Otjihase Project. The Tschudi Mine is an operating
open pit mine producing refined copper cathode on site. The key
assets of the Otjihase Project are the Otjihase underground copper
mine and concentrator and the Matchless West underground copper
mine. The Otjihase Project assets are currently under care &
maintenance while in the Project Development stage. Weatherly also
owns 25% of China Africa Resources Namibia (CARN), a private
Namibian company which owns the high-grade Berg Aukas underground
zinc-lead-vanadium project. On 5 February 2018 it announced that it
had signed an agreement to purchase a further 65% of CARN subject
to regulatory approval. On 12 December 2017, Weatherly announced
that it had entered into an agreement to purchase the Kitumba
copper development project in Zambia. The transaction has
subsequently been approved by the vendors shareholders and is only
subject to regulatory approval.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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