Kefi restructures loan facility
Aim-listed Kefi Minerals on Monday announced changes to its working capital convertible loan facility, as well as a new working capital loan facility.
Kefi said this would provide greater flexibility to the company by removing existing security charges over assets and extending the loan maturity dates.
Of the company’s existing £4-million loan facility, £900 000 had been withdrawn and £450 000 repaid, leaving £3.1-million available to be drawn down.
However, the £3.1-million has been replaced, in part, by a new £1.5-million loan facility.
The loan facility has been provided by a long-standing shareholder of the company. The new loan facility can be drawn at the company’s discretion at a rate of £500 000 a month in £250 000 tranches and, if drawn, is repayable within two years.
Once any amount drawn under the new loan facility is repaid, the company will be able to draw from the remaining £1.6-million of the loan facility, if required.
The cost of these changes in security and related arrangements include £207 500 to be paid by the issuance of 8.5-million new Kefi ordinary shares and a cash consideration of £37 500.
Kefi is developing the Tulu Kapi gold project, in Ethiopia, and exploring the Hawiah target, in Saudi Arabia.
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