Northam Platinum, the JSE-listed platinum miner says the new facility further strengthens the company’s balance sheet capability in support of the group’s key strategic initiatives, including the development of the Booysendal expansion projects.
Together with existing cash reserves, the new facility provides Northam Platinum with increased financial flexibility, ensuring that the group’s growth initiatives remain fully funded in the medium-term.
The terms of the five-year senior unsecured revolving credit facility include a facility limit of R1 billion for the first 18 months from inception, whereafter the new facility limit automatically increases to R1.5 billion for the remainder of the five year period.
During the five year term, Northam Platinum will also be permitted to make voluntary prepayments and redraws.
Paul Dunne, Northam’s CEO says that the new and increased long-term revolving credit facility, combined with Northam’s Domestic Medium Term Notes (DMTN) programme (which was initiated in 2012) and the R6.6 billion equity raised in the company’s black economic empowerment transaction with empowerment partner Zambezi Platinum, undertaken in 2015, gives the company significant long-term balance sheet certainty and flexibility.
“Northam is well placed to pursue its strategic growth projects and to implement sound long-term strategies,” says Dunne.