Straits flags refinancing deal
PERTH (miningweekly.com) – Copper developer Straits Resources has signed a term sheet with its lender Standard Chartered Bank (SCB) and an Asia-based investment firm to restructure its current debt.
The term sheet proposed reducing the SCB debt to a sustainable level over a seven-year term, and allowing SCB to take a significant convertible equity position in the company.
The Asian investor would provide a revolving priority debt facility and would be issued with convertible equity.
Straits said the investor facility would provide the company with the financial flexibility to pursue its various growth projects and to restart greenfield exploration on its prospective tenement packages around the Tritton copper project, in New South Wales.
The signing of the term sheet triggered a 45-day exclusivity period with SCB and the investor, during which formal documents would be executed.
Straits noted that the refinancing remained subject to the execution of definitive documentation and shareholder approval, as well as the restructuring of the $7-million convertible notes and any regulatory consent.
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