US$100 million debt facility agreement completed: Eastern Platinum Limited
Eastern Platinum Limited (the “Company” or “Eastplats”) is pleased to report that further to its press release of February 1, 2011 announcing the receipt of letters of commitment for a debt facility, it has now signed a definitive agreement with UniCredit Bank AG, London Branch and Standard Finance (Isle of Man) Limited (a subsidiary of The Standard Bank of South Africa Limited) for a US$100 million financing package to be used to part fund the development costs of its Mareesburg Project and the construction costs of the associated concentrator.
Highlights of the key terms of the financing package include:
- Scheduled tenor of 5.5 years with an 18 month grace period for principal repayments
- Separate term and revolving loan facilities (US$70 million and US$30 million, respectively)
- Initial interest rate of US LIBOR + 3.85% rising to US LIBOR + 4.15% for the last 2.5 years of the loan. US one-month LIBOR currently sits at approximately 0.26%.
- No required commodity, currency or interest rate hedging
The term loan and revolving loan can be drawn down upon the satisfaction of agreed conditions precedent which is expected to occur on or prior to March 31, 2012.
“This financing, combined with our existing cash resources, provide us with substantial flexibility over the upcoming year as we complete the development of Mareesburg and the construction of the concentrator within the next twelve months. We thank both UniCredit and Standard Bank for their ongoing support and commitment to Easplats and are very pleased to be in such a well-capitalized position for this next stage of our corporate growth. We expect Mareesburg to be a low-cost operation that will deliver 100,000 PGM ounces per year at full production,” said Ian Rozier, President and CEO of Eastplats.
Total shares issued and outstanding: 928,187,807
PSG Capital (Pty) Limited
Email: [email protected]
Tel: +27 21 887 9602
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.