Central Asia Metals consolidates borrowings into single facility

Central Asia Metals has refinanced its debt, it announced on Friday, consolidating borrowings into one facility.

The AIM-traded firm said that at the time of the Sasa mine acquisition, its entities had debts of $67m, which Central Asia Metals inherited.

In addition, Central Asia Metals borrowed $120m from its offtake partner, Traxys, to part-finance the acquisition, resulting in group gross debt of $187m in November 2017.

Having made contractual debt repayments of $36m since the acquisition, the company said it increased the size of the Traxys facility in December 2018 by $60m to $151m, and used the proceeds to repay the Sasa facility in full, as well as a local bank working capital facility, plus accrued interest.

It said the corporate debt facility carried 4.75% interest plus one-month US Libor, and would be repaid monthly on a straight-line basis within four years with no requirement for cash sweeps.

“We are pleased to have consolidated our borrowings into the one corporate debt facility,” said Central Asia Metals chief executive officer Nigel Robinson.

“Removal of the Sasa debt will enable CAML to restructure and simplify its Sasa corporate structure, which is expected to be completed in the first quarter of 2019.”