Johannesburg, South Africa — MININGREVIEW.COM — 18 January 2011 – Sentula Mining has received final credit approval for a R740 million facility from a consortium of financial institutions, to re-finance the group’s existing senior debt facility and to provide liquidity to the group.
The consortium comprises Standard Bank of South Africa Limited (SBSA), The Hong Kong and Shanghai Banking Corporation Limited (Johannesburg Branch), and Sanlam Capital Markets Limited.
In a statement released here confirming to transaction, Sentula said that SBSA had been mandated to advise and arrange the refinance. This refinance would provide Sentula with immediate capacity of R140 million for new capital equipment. It would provide the group with refurbishment funding for the existing fleet and idle equipment of R120 million over a six month period, via a capital moratorium. The structure would also allow for further drawdown’s to finance new capital equipment over a four year period provided the aggregate debt within Sentula did not exceed R800 million.
“Sentula intends to have the facility implemented by early February 2011,” the statement added. “The facility’s availability is subject to conclusion of final documentation and fulfillment of conditions applicable to a facility of this nature,” it added.
Sentula CEO Robin Berry commented: “We are encouraged by the support from this consortium of credible financial institutions which have clearly demonstrated their commitment to Sentula. The refinancing structure creates more cash flow headroom, enables management to focus on operational issues, and provides the Group with the requisite capital to reinvest in its fleet for sustainable growth into the future,” he added.