The loan facility, provided to wholly-owned Goldplat subsidiary, Gold Mineral Resources, is available for a period of 360 days from the date of first draw-down and the term can be extended, or the size increased, on the mutual agreement of both parties. Interest is payable on amounts drawn under the loan facility at a rate equal to Intercontinental Exchange London Interbank Offered Rate (LIBOR) plus a margin of 9.5% per annum.
Security on the drawn amounts has been granted over Goldplat Recovery tailings facility in South Africa, inter-company loan agreements, contracts and proceeds of sale with gold refiners, and the collection bank account operated by Gold Mineral Resources for that purpose.
The security is granted by Gold Mineral Resources and other subsidiaries of Goldplat, with Goldplat Recovery signing as guarantor. Various positive and negative undertakings and covenants are provided in the loan facility documentation.
To date, the processing plant expansion at the Kilimapesa gold mine in Kenya has been funded out of internally-generated operating cash flows. With stage one of the expansion commissioned, the company has decided to arrange the loan facility to recapitalise the group’s subsidiaries that have financed the work to date, and to fund the expenditure of stage two of the processing plant expansion.
Stage two is expected to increase gold production at Kilimapesa from the current stage one 60 tpd to 120 tpd, with a target of achieving an annualised production rate after stage two of approximately 4 500 oz of gold.
“We stated in our interim results announced on 20 February 2017 that we were looking at various forms of debt capital raising with a view to restructuring the group balance sheet and I am very pleased to have agreed this loan facility with Scipion,” comments Gerard Kisbey-Green, CEO of Goldplat .
“We will use the funds initially to complete stage two of the processing plant expansion at Kilimapesa and to repay the capital made available to Kilimapesa Gold from other group subsidiaries for goods and services rendered. The result will be a cleaner and more appropriate group capital structure and availability of working capital for our recovery businesses,” he concludes.
Featured image credit: Goldplat