Pan African Resources PLC - gold producer in South Africa - Says new ZAR1 billion revolving credit facility came into effect on November 25. Notes new facility consolidates previous RCF, which expires in June 2022 and existing term loan.
New three-year RCF, provided by South African lenders Rand Merchant Bank Ltd and Nedbank Ltd, bears interest at a reduced margin of 275 basis points over the applicable Johannesburg Interbank Average Rate rate, compared to the 380 and 330 basis points over Johannesburg Interbank Average Rate with previous loans.
Available capacity of loan reduces to ZAR850 million and ZAR700 million at end of 2022 and 2023, respectively, with a final maturity date of June 30, 2024.
Chief Executive Cobus Loots says: "Even though the group expects to be materially debt-free during the next year, the new RCF provides the group with access to a flexible and cost effective facility over the next three years, should it be required for growth or contingency purposes."
Current stock price: 18.00 pence in London; ZAR3.88 in Johannesburg
Year-to-date change: down 24% in London; down 19% in Johannesburg
By Paul McGowan; paulmcgowan@alliancenews.com
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Pan African Resources (PAF)