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Weatherly Int. (WTI)

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Monday 30 October, 2017

Weatherly Int.

Rescheduling of Loan Repayment

RNS Number : 9091U
Weatherly International PLC
30 October 2017
 

30 October 2017

This announcement includes release of insider information

Weatherly International plc (AIM:WTI)

("Weatherly" or "the Company")

Rescheduling of repayment

Summary

Weatherly announces that debt repayments due to Orion Mine Finance (Master) Fund I LP ("Orion") have been rescheduled; that the Company has made no further drawdown on the uncommitted US$10m loan since the last rescheduling on 30 August 2017; and that it has certain copper and currency hedges in place out to May 2018.

Debt Financing and rescheduling of repayments

Weatherly has entered into a further amendment and restatement agreement in relation to its existing facility with Orion (the "Amendment and Restatement Agreement"). The first repayment of Facility B, previously due on 31 October 2017 is now due on 31 December 2017 and the second repayment previously due on 30 November 2017 is now due on 31 January 2018.Subsequent payments are unchanged, payable quarterly from 28 February 2018 until 28 February 2020.The Facility B Final Maturity Date remains unchanged at 28 February 2020. Each Facility B repayment will remain unchanged so that Facility B will be repayable in 11 equal repayments of US$9.7m each. The repayment of US$10.3 million including capital and interest up until 31 August 2017 under Facilities C and D of the Amended Facility has been deferred until 31 December 2017.  Interest accruing on Facility B, Facility C and Facility D loans, amounting to US$1.8m in total, will no longer be capitalised and added to the principal amount of those loans but will accrue and be payable on the date of repayment of the corresponding principal amount or, at Orion's discretion, at the end of the three-month interest period then current. Unpaid interest will accrue at a default rate of libor + 12% (with libor a minimum of 2%).  Orion has agreed, effective until 31 December 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility.

Orion is a related party of the Company by virtue of Orion being a substantial shareholder in the Company and consequently the execution of the Amendment and Restatement Agreement is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors of Weatherly (being all of the directors other than Edwin Bennett, by virtue of his association with Orion) consider, having consulted with Weatherly's nominated adviser, RFC Ambrian Limited, that the terms of the Amendment and Restatement Agreement are fair and reasonable insofar as Weatherly's shareholders are concerned.

Loan draw downs and hedges

Weatherly advises it has made no further drawdowns on the US$10 million uncommitted loan from Orion Mine Finance announced on 28 July 2017 to accelerate the building of the leach pads and to fund working capital requirements at Tschudi. To seek to ensure the loan would be sufficient to meet the necessary funding requirements the Company has hedged both copper and currency out to May 2018. In addition to hedges previously announced, Weatherly has 1,000 tonnes a month fixed April to May at an average copper price of US$6,474 per tonne and N$ to US$ exchange rate of 13.45.

As previously advised on 28 April 2017 as a loan rescheduling fee, Orion has the right (but not the obligation) to buy, if available, up to 700 tonnes of unhedged cathode each month from Weatherly until 30 April 2018 at a price of US$6000 per tonne. Orion can only exercise its option to the extent of unhedged tonnes produced in the month. So far this financial year Orion have not elected to exercise their option.

The Company and its subsidiaries are unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. The Company continues to positively engage with Orion on the subject.

For further information please contact:

Weatherly International plc                                                 +44 (0) 1707 800 774

Craig Thomas, Chief Executive Officer

Kevin Ellis, CFO and Company Secretary

 

RFC Ambrian Limited                                                     +44 (0) 20 3440 6800

(Nominated Adviser & Broker)

Nominated Adviser Contact: Stephen Allen / Bhavesh Patel

Broker Contact: Charlie Cryer

 

About Weatherly

Weatherly is an AIM listed copper mining company operating in Namibia in southern Africa. Its principal assets are one operating open pit copper mine called Tschudi and two underground copper projects called Otjihase and Matchless.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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