Wednesday , April 24 2024

Weatherly seek more debt financing from Orion

Weatherly has drawn down US$2 million from Orion Mine Finance to accelerate the building of the leach pads and to fund working capital requirements at Tschudi.

The funds come from US$10 million uncommitted loan announced early this year.

Weatherly says to ensure the loan would be sufficient to meet the necessary funding requirements the company has hedged both copper and currency out to March 2018, and some of these hedges into prior to the recent upward movement in copper prices.

The company has 1000 tonnes per month fixed September to December at an average copper price of US$6,077 per tonne and US$ to N$ exchange rate of 13.38; and 1000 tonnes per month fixed January to March at an average copper price of US$6,464 per tonne and US$ to N$ exchange rate of 13.25.

Meanwhile Orion has the right to buy, if available, up to 700 tonnes of unhedged cathode each month from Weatherly until 30 April 2018 at a price of US$6000 per tonne.

Forecast indicate that the company and its subsidiaries are unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term.

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