Midtier Africa-focused gold producer Pan African Resources’ new R1-billion revolving credit facility (RCF), which became effective earlier this month, has a three-year term and bears interest at a reduced margin of 275 basis points over the applicable Johannesburg Interbank Agreed Rate.
The new RCF consolidates the previous loan, which would have expired in June next year, and the existing Elikhulu term loan.
The new RCF is provided by Rand Merchant Bank and Nedbank, and has an available capacity of R850-million and R700-million on December 31, 2022, and December 31, 2023, respectively, with a final maturity date of June 30, 2024.
Pan African CEO Cobus Loots says that even though the group expects to be materially debt-free during the next year, the new RCF provides the group “with access to a flexible and cost-effective facility over the next three years, should it be required for growth or contingency purposes”.