JOHANNESBURG (miningweekly.com) – ASX-listed Universal Coal has strengthened its cash position and shifted its project finance debt facilities to more favourable terms following a drawdown of its R285-million Kangala finance facility with Investec Bank.
The drawdown, which effectively replaced the previous project finance debt facilities with FirstRand Bank, released restricted cash and helped expedite the development of Universal’s second operation, the New Clydesdale colliery (NCC).
“With the drawdown releasing restricted cash and our first operation, Kangala, generating strong cash flow, we are in an excellent cash position to continue growing the company and increasing shareholder value,” said Universal CEO Tony Webber in an update to shareholders on Monday.
The tranche-A facility would be subject to the three-month Johannesburg Interbank Agreed Rate plus a margin of 4% a year, until the completion of NCC, after which the margin would be reduced to 3.5% a year.