Straits sells legacy debts
PERTH (miningweekly.com) – ASX-listed metals miner Straits Resources has sold its interest in certain subordinated debt and notes owed by Swiss company GFE-MIR Holdings for $2.6-million.
The subordinated debt of $12-million was provided by Straits in 2010, but Straits had previously written down the value of the subordinated debt on its accounts to nil, on the likelihood of recovering the amount owned.
Executive chairperson Andre Labuschagne said on Tuesday that the sale of the legacy debt was consistent with the company’s strategy of simplifying the company structure and monetizing noncore assets.
The company recently shifted its focus to its copper assets, after operations were halted at the Mount Muro project in August last year.
As such, Straits in September restructured its copper swap facility with Standard Chartered Bank to secure more attractive repayment terms. Under the revised terms, the monthly repayments would be reduced from 450 t to 69.9 t of copper over the following nine months, at the end of which the remaining facility would be restructured over a five-year term, instead of the current three years.
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