Last checked at 2 Jun 2016 07:00
2 June 2016
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Rescheduling of repayment - agreement concluded
Summary
Further to the announcement of 31 May 2006, Weatherly announces that it has formally concluded a further amendment and restatement agreement with Orion Mine Finance (Master) Fund I LP ("Orion") in relation to the facility agreement between Orion and the Company's subsidiary Ongopolo Mining Limited (the "Amended Facility"). Under the Amended Facility, the first repayment of Facility B Loans has been deferred to 28 February 2017. The Facility B Final Maturity Date remains unchanged at 29 February 2020, and each Facility B repayment will be increased accordingly. The repayment schedules of Facilities C and D remain unchanged.
Debt Financing and rescheduling of repayments
Weatherly announces that, following discussions with Orion, it has entered into a further amendment and restatement agreement with Orion. Under the Amended Facility, the first repayment of Facility B Loans has been deferred to 28 February 2017 and Orion has agreed, effective until 28 February 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility. The Facility B Final Maturity Date remains unchanged at 29 February 2020, and each Facility B repayment will be increased so that the Facility B Loans will be repayable in 13 equal repayments.
As a loan rescheduling fee, Orion will receive, inter alia, the right to buy 700 tonnes of cathode each month from Ongopolo Mining Limited for the period from 1 July 2016 to 31 May 2017 at a price of US$5000 per tonne (the "Updated Offtake Terms").
The repayment of the US$8.6 milllion lent under Facilities C and D of the Amended Facility remains unchanged with Facility C due for repayment on 31 August 2016 and Facility D on 9 December 2016.
About Orion and Related Party Disclosure
Orion is a related party of the Company by virtue of being a substantial shareholder in the Company and consequently the entry into of the Amended Facility and the Updated Offtake Terms are 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, that the terms of the Amended Facility and the Updated Offtake Terms are fair and reasonable insofar as Weatherly's shareholders are concerned.
For further information please contact:
Weatherly International plc +44 (0) 20 7936 9910
Craig Thomas, Chief Executive Officer
Kevin Ellis, CFO and Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Stephen Allen / Kim Eckhof
Blytheweigh +44 (0) 20 7138 3204
(Financial PR)
Tim Blythe / Camilla Horsfall / Megan Ray
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.
These assets will enable Weatherly to achieve its medium term goal of establishing a mining business capable of sustaining approximately 25,000 tonnes per annum of copper production.
The Company also has a 25 per cent. stake in the AIM listed company, China Africa Resources plc (AIM: CAF), which is developing a lead/zinc mine called Berg Aukas, also in Namibia.