(Alliance News) - Tharisa PLC on Monday said it concluded a USD130 million debt facility with Societe Generale SA and Absa Bank Ltd as part of its debt capital programme.
The Cyprus-headquartered platinum miner said the facility is subject to the fulfilment of some conditions, but it did not say what these are.
Spanning a 42-month tenure, the debt facility is part of Tharisa's funding strategy of investing in its assets while maintaining a sustainable dividend, it said.
The facility comprises a term loan of USD80 million and a USD50 million revolving credit facility, secured by commodity offtake agreements.
This capital raise follows the successful issue of a three-year USD32 million bond listed on the Victoria Falls Stock Exchange in December last year, Tharisa noted.
"The Societe Generale and Absa senior debt facilities, as well as the significant free cash flow generated from the Tharisa mine, provide significant flexibility to Tharisa's capital allocation policy," Chief Executive Michael Jones said.
As at December 31, Tharisa had a cash balance of USD213.9 million and debt of USD112.8 million for a net cash position of USD101.1 million.
By Artwell Dlamini, Alliance News reporter
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Tharisa (THS)