Alphamin arranges $80M (U.S.) credit line for Bisie
ALPHAMIN RESOURCES Corp. has secured a credit facility of $80-million (U.S.) from a syndicate of lenders for the construction of the Bisie tin mine (the ABM project) in the Democratic Republic of the Congo.
• Project debt financing now secured with credit agreement signed with a syndicate of lenders for an $80-million (U.S.) credit facility;
• Commitments received for 55 per cent of the remaining total equity financing required to complete construction and final equity raise has commenced and targeted for completion this quarter;
• Construction of the ABM project progressing well;
• Project commissioning scheduled to commence early in 2019 and achieve steady state production before the end of 2019. A definitive credit agreement has been signed by Alphamin with Sprott Private Resource Lending (Collector) LP, Barak Fund SPC Ltd. and Tremont Master Holdings in respect of an $80-million (U.S.) senior secured, non-revolving, term credit facility to be provided to Alphamin’s 80.75-per-cent-owned subsidiary, Alphamin Bisie Mining SA (ABM), as borrower, for the continued development of the ABM project.
“We are very pleased that Sprott and Barak have committed to partner with our existing major shareholder, Tremont, to provide the debt financing needed for the ABM project, as a step in drawing the fundraising process towards a close and delivering on our commitment to stakeholders to bring the ABM project into production,” said Boris Kamstra, chief executive officer of Alphamin. “The ABM project is advancing and our team has made excellent progress in the construction of the mine and associated infrastructure. The completion of the box cut for the underground portal of the mine is another key risk mitigating milestone for the project. We’ve also received commitments for the majority of the remaining equity funding requirement, so we are excited to move this forward with everyone involved.”
To date, Alphamin has secured in excess of 80 per cent of the remaining financing needed for the ABM project, which includes this $80-million (U.S.) credit facility, $13.7-million (U.S.) commitment from the Industrial Development Corp. of South Africa Ltd. (IDC), and $24.7-million (U.S.) commitment from Tremont. As a result, Alphamin will now focus on raising the final $31.4-million (U.S.) of equity to complete the ABM project. Credit facility terms
The credit facility provides for an initial advance of $10-million (U.S.). The balance of $70-million (U.S.) will become available following the satisfaction of certain subsequent conditions precedent, including, inter alia, the company completing an equity financing of a minimum of $50-million (U.S.) net of associated costs (of which $24.7-million (U.S.) has been
committed by Tremont as its participation pro-rata to current ownership).
Overall financing update The ABM project has a peak financing requirement of $172.1-million (U.S.), including a total contingency of $23-million (U.S.) ($8-million (U.S.) previously). To date, $140.7-million (U.S.) has been raised and committed, covering in excess of 80 per cent of the total peak financing requirement.
(See AFM Table 1 on page 3)
Equity financing Alphamin is now commencing the raising of the final equity required to complete the ABM project. Alphamin intends to raise up to $56.1-million (U.S.) in the planned equity financing, with Tremont committing to participate in the amount of $24.7-million (U.S.). This final equity raise is in progress and is expected to close before year-end. Pricing and other offering terms will be announced as soon as determined.
To enable the ABM project to continue on its critical path development timeline without interruption, Alphamin has secured a $5.7-million (U.S.) bridge loan from Tremont. The bridge loan is unsecured and repayable from the proceeds of the next equity financing by ABM no later than Jan. 31, 2018.
Tremont owns 44.1 per cent of the outstanding common shares of Alphamin. As a result of the participation in the credit facility, and the bridge loan provided by Tremont, the credit facility and bridge loan are both considered to be related party transactions.
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Karen Baxter condensed this news release (email@example.com).
Paul Baloyi, Brett Childs, Brendon Howard Jones, Boris Richard Kamstra, Charles Denby Stockton Needham, Eoin O’Driscoll, Rudolf Pretorius, Bernard Swanepoel
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