Forbes remains optimistic of future
JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal remains optimistic about its prospects, despite a major shake-up getting under way and a reining in of ambitions.
The coal producer, amid serious financial difficulty, this week embarked on a rebranding strategy, including a name change, after deciding to close its Toronto, Canada, offices and shuffle management.
The miner, which received permission from the TSX to rely on a financial hardship exemption on a $4-million bridge loan, would ease its currently “ambitious” strategies as it settled into a new identity.
However, incoming CEO Malcolm Campbell was excited about opportunities in the near future, believing that the company’s strategies would come to the fore in April, which coincided with the closing of a $15-million convertible loan.
The company last month secured a $19-million loan facility, comprising a bridge loan of $4-million and the convertible loan from Resource Capital Funds (RCF), to fund the closure of its offices in Canada, for much needed working capital and to improve capital for the company’s KwaZulu-Natal operations.
“Because of continuing operating losses and a working capital deficiency, the company's continuance as a going concern is dependent upon its ability to obtain adequate financing and to reach profitable levels of operation,” Forbes Coal said in a statement earlier this week.
The bridge loan, which would mature on June 30, was expected to close on January 31, while the convertible loan, set to mature in June 2017, would close on April 30.
Forbes Coal was also negotiating the possible restructure of its debt facilities with one of its lenders and, subject to approval, planned to amend the terms and conditions of a previous $6-million RCF convertible loan to the same as the new one.
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