Under the amended facility, the repayment of Facility D has been deferred to 28 February 2017 and interest accruing on the loans made under Facility D will be capitalised. Weatherly is an AIM-listed copper producer.
No additional fees have been charged for this amendment to the facility agreement and there are no changes to the offtake agreement.
The repayment dates of Facilities B and C of the amended facility remain unchanged, said Weatherly. Facility C is due on 28 February 2017 and Facility B is due to be repaid in 13 equal quarterly instalments, with the first payment due on 28 February 2017 and the final repayment due on 29 February 2020.
AIM-listed Weatherly International’s principal assets are Tschudi, an operating open pit copper mine, and two underground copper projects called Otjihase and Matchless.
The company believes that these assets will enable Weatherly International to achieve its medium term goal of establishing a mining business capable of sustaining approximately 30 000 t of copper production per year.
Weatherly International first advised in early June this year that it was unable to meet its loan repayment deadlines due to the level of the copper price. The first rescheduled installment of Tranche B of the facility between Orion Mine Finance (Master) Fund I LP and Weatherly International was due on 31 May 2016.
Following discussions between the company and Orion, which is also the company’s largest shareholder, Orion and Weatherly International agreed in principle to defer the payment of this installment.