JOHANNESBURG (miningweekly.com) – Mozambique-focused Kenmare Resources has entered into a conditional subscription and relationship agreement with chemicals trading company King Ally Holdings for a proposed $100-million investment in Kenmare.
The proposed investment would be on the basis that King Ally would hold a maximum 29.9% of Kenmare’s enlarged issued share capital on completion of a capital restructuring.
Kenmare had previously proposed a deleveraging plan, which would include a capital restructuring and equity fundraising of at least $275-million. Of this amount, a significant portion would be used to reduce the company’s debt, with the balance to be used for working capital purposes.
The proposed investment by King Ally would from part of the $275-million equity raising.
Kenmare had already entered into an agreement for a proposed $100-million equity investment by SGRF – a sovereign wealth fund of the Sultanate of Oman.
The miner expected to raise a further $75-million from new and existing shareholders.
Kenmare had been in discussion with its lenders regarding the deleveraging plans. These discussions continued.