Thursday , May 23 2024

Weatherly operations continue to reel in cash challenges

Weatherly’s Ongopolo Mining Limited has rescheduled repayments for the various trenches of debt finances, extended to the company by Orion Mine Finance.

The companies have agreed to defer repayment of Ongopolo’s Facility B loans to 30 June 2017 while the final maturity date remains unchanged at 29 February 2020, though repayment interest will be increased.

Orion has agreed to limit its acceleration and enforcement rights on the terms set out in the amended facility.

The company has also highlighted to stakeholders that repayment schedule of the US$8.6 milllion lent under Facilities C and D has been deferred to 30 June 2017.

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 May 2017 to 30 April 2018 at a price of US$6000 per tonne.

However, the company has expressed fears that if copper prices remain at current levels it is unlikely that the company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments under the Amended Facility.

The cash strapped outfit is also concerned by its due and planned capital expenditure to support achieving production and operating cost targets.

Meanwhile the company continues to positively engage with Orion on the subject.

Weatherly Ongopolo Mining Limited’s operations were last year affected by the international uncertainties of copper prices.

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