Weatherly International defers loan repayment

Weatherly International’s largest shareholder and lender, Orion, has agreed to defer a loan instalment repayment as the company’s Tschudi mine in Namibia is not making sufficient operating cash for the service of its debt facility.

Weatherly, which is engaged in mining and the production of base metals, produced 1,361 tonnes of copper cathode at Tschudi in October at a cost of $4,361.

The company said it expects to achieve nameplate production levels of 1,400 tonnes of copper cathode by the end of the quarter in line with its previous announcements, and for costs to be lower as a result of this.

However, it cautioned that in light of the current copper price, which is at a six year low, the Tschudi mine is not making sufficient operating cash for the service of its debt facility.

Weatherly is due to repay the first repayment on Tranche B of its loan to Orion Mine Finance Master Fund I LP on 30 November.

Orion has confirmed that it agreed to defer the payment of this instalment, and discussions around the detail of these amended arrangements have commenced.

At 0923 GMT, Weatherly shares were down 27% to 0.42p.