JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum has secured a new R1.5-billion five-year revolving credit facility to replace its existing R1-billion revolving credit facility which matures in November.
The new facility strengthens Northam’s balance sheet in support of its key strategic initiatives, including the development of the Booysendal expansion projects.
Together with existing cash reserves, the new facility provides Northam with increased financial flexibility, ensuring that the group’s growth initiatives remain fully funded in the medium term.
“The new and increased long-term revolving credit facility, combined with Northam’s domestic medium-term note programme and the equity raised in our empowerment transaction with Zambezi Platinum, gives the company significant long-term balance sheet certainty and flexibility.
“Northam is well placed to pursue its strategic growth projects and to implement sound long-term strategies,” says Northam CEO Paul Dunne.
Zambezi Platinum, a special purpose vehicle to house the black shareholding in Northam, listed on the JSE in May 2015. Simultaneously, Zambezi made R4-billion in cash available to Northam to fund its growth projects.