Mawson West the copper producer operating in the DRC and headquartered in Perth, Australia, have agreed to a US$ 33.4 million financing deal.
Galena Asset Management have provided the financing via the private equity fund they manage.
Mawson West Chief Executive Bruce McFadzean said:
“We are delighted to welcome Galena as our largest shareholder and strategic partner. This transaction strengthens our balance sheet and provides a sound base for Mawson West to establish a strong cash flow and provide opportunity for growth in a difficult market.”
In addition, Galena’s affiliate entity Trafigura Pte Ltd (the Company’s current offtaker and senior lender), will provide additional financial assistance to the Company in two ways:
- Amendments to its Prepayment Facility with Trafigura,
- An extension to the term of its offtake agreement with Trafigura.
“We are pleased with the support shown by Trafigura and Galena who share the Company’s view that Mawson West has quality assets and a strong future as a copper producer. Trafigura’s willingness to re-sculpt the debt payment profile to better reflect our production ramp up is welcomed by the Company.”
The proceeds of the financing and the amendments to the Prepayment Facility will be used to provide the Company with sufficient working capital to manage the uninterrupted ramp up of the Kapulo copper mine through to positive cash flows and strengthen its balance sheet to manage its debt repayment requirements.
Kapulo and Dikulushi copper mines
The Company’s two key projects, the Dikulushi copper-silver mine and the Kapulo copper mine, are located in the Katanga province in the DRC. Mawson West also continues to focus on exploring multiple prospective targets located within its significant land holding of approximately 7,300km2 in the DRC’s rich copper belt.
“I am pleased to report that the commissioning of the Kapulo copper mine commenced during November and production is expected to commence during Q1 2015. Upon completion of this transaction, with the balance sheet strengthened, the Company will be focussing on the ramp up and optimisation of both of our copper production projects. We expect to see them producing at their full potential and generating cash flow in 2015.”