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(Correcting that Metals Exploration's two major shareholders bought the debt off HSBC and BNP Paribas, not the other way round.)
(Alliance News) - Metals Exploration PLC said Wednesday its two major shareholders have taken over debt owed to two banks.
Runruno Holdings Ltd and MTL Guernsey Ltd have purchased all rights and obligations under a USD68.5 million facility from HSBC Holdings PLC and BNP Paribas SA. Runruno and MTL are major shareholders of Metals Exploration.
The miner said Runruno and MTL also hold Metals Exploration's mezzanine debt, meaning all debts are now consolidated. The company expects the transaction to allow it to finalise a complete debt restructuring, giving it a "stable" debt profile.
Metals Exploration Chief Executive Darren Bowden said: "It is very pleasing to have concluded this initial step in the company's debt restructuring process. Negotiations with our new lenders are well progressed.
"Hopefully, following the completion of the transfer of the senior facility, these negotiations can be concluded swiftly, such that the company's financial position becomes sustainable; allowing management to focus its efforts on improving operational performance at Runruno and to consider growth options for the company."
Metals Exploration has been in talks over its debt position for some time, having agreed a number of standstills on repayments which gave it some breathing space.
The company owns the Runruno gold project in the Philippines. In the third quarter of 2019, it produced 18,239 ounces of gold, 42% higher year-on-year.
By George Collard; georgecollard@alliancenews.com
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