South African integrated resources group Tharisa has secured a US$130 million credit facility from Absa Bank and Standard Bank South Africa, Energy Capital & Power reported this Monday (17).
According to the outlet, the package comprises a US$80 million four-year term loan (with an additional US$20 million “accordion” extension option) and a 900 million rand (approximately US$50 million) revolving credit facility.
The funds will be used to amortize the outstanding balance of an existing term loan and a revolving credit facility, as well as to finance the company’s general needs and working capital, including sustainability investments at the Tharisa Mine.
According to Tharisa’s Chief Financial Officer, Michael Jones, this financing will support the company’s plan to expand mining operations underground and sustain its long-term growth strategy: “This transaction reduces our overall cost of capital, extends debt maturities and improves financial flexibility, enabling us to better manage changing market conditions and continue investing in our strategic priorities.”
As of September 30, Tharisa reported having US$173 million in cash, US$104.4 million in debt and a net cash position of US$68.6 million.
The agreement is subject to the fulfilment of certain conditions precedent and forms part of the company’s ongoing programme to strengthen its capital structure.
