Debt refinancing

RNS Number : 1671M

Central Asia Metals PLC

04 January 2019

 

4 January 2019

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Debt refinancing

Central Asia Metals plc (AIM: CAML) today announces that it has refinanced its debt, consolidating borrowings into one facility.   

At the time of the Sasa mine acquisition, its entities had debt of $67 million, which CAML inherited. In addition, CAML borrowed $120 million from its offtake partner, Traxys, to part-finance the acquisition, resulting in Group gross debt of $187 million in November 2017.

Having made contractual debt repayments of $36 million since the acquisition, the Company increased the size of the Traxys facility in December 2018 by $60 million to $151 million and used the proceeds to repay the Sasa facility in full and a local bank working capital facility, plus accrued interest.

This corporate debt facility carries 4.75% interest plus 1-month US Libor and will be repaid monthly on a straight-line basis within four years with no requirement for cash sweeps.

Nigel Robinson, Chief Executive Officer, commented:

"We are pleased to have consolidated our borrowings into the one corporate debt facility. Removal of the Sasa debt will enable CAML to restructure and simplify its Sasa corporate structure, which is expected to be completed in Q1 2019."

For further information contact:

Central Asia Metals	Tel: [phone]
Nick Clarke, Chairman
Nigel Robinson, CEO
Gavin Ferrar, CFO
Louise Wrathall, Investor Relations	[e-mail]
Peel Hunt (Nominated Advisor and Joint Broker)	Tel: [phone]
Ross Allister
James Bavister
David McKeown
Mirabaud Securities (Joint Broker)	Tel: [phone]
Peter Krens
Blytheweigh (PR Advisors)	Tel: [phone]
Tim Blythe
Camilla Horsfall
Megan Ray

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.

 

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