NQ Minerals PLC (AQSE:NQMI)(OTCQB:NQMLF) has signed a US$55mln loan facility with ING.
The funds from the ING Facility are being used to retire all project debt maturing in 2020.
This debt was secured over the assets of, and shares in, Hellyer, the company’s tailings reprocessing project in Tasmania, Australia.
At the same time, Hellyer has signed life-of-mine marketing agreements with Traxys Europe S.A. for the purchase of all the metal concentrates to be produced from its tailings reprocessing activities.
The ING Facility has a six year duration, with scheduled monthly amortization repayments of principal commencing in August 2021 and continuing until the final maturity date.
A cash sweep mechanism, included in the facility, may require early repayment of principal from all or part of the surplus cash available from the Hellyer project activities.
The ING facility is secured on a senior basis over the assets of Hellyer, which consist of the tailings reserves and the processing plant at the Hellyer site, as well as the shares in Hellyer, which is 100% owned by NQ.
The ING facility bears an initial interest rate of Libor plus 6.5% per year, which falls to Libor plus 6% once hedges have been executed.
“The signing of this US$55 million facility with ING is a major milestone in NQ’s corporate evolution and bodes well for the future of our mining operations at Hellyer and elsewhere in Australia,” said NQ chairman David Lenigas.
“The completion of this refinancing transaction allows us to both reduce funding costs and align funding maturities in line with mining operations.”