Eastern Platinum Limited: US$100 Million Debt Facility Agreement Completed
03.01.2012 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Jan. 3, 2012) - Eastern Platinum Limited (TSX: ELR) (AIM ELR) (JSE: EPS) (the "Company" or "Eastplats") is pleased to report that further to its press release of February 1, 2011 announcing the receipt of letters of commitment for a debt facility, it has now signed a definitive agreement with UniCredit Bank AG, London Branch and Standard Finance (Isle of Man) Limited (a subsidiary of The Standard Bank of South Africa Limited) for a US$100 million financing package to be used to part fund the development costs of its Mareesburg Project and the construction costs of the associated concentrator.Highlights of the key terms of the financing package include:
- Scheduled tenor of 5.5 years with an 18 month grace period for principal repayments
- Separate term and revolving loan facilities (US$70 million and US$30 million, respectively)
- Initial interest rate of US LIBOR + 3.85% rising to US LIBOR + 4.15% for the last 2.5 years of the loan. US one-month LIBOR currently sits at approximately 0.26%.
- No required commodity, currency or interest rate hedging
The term loan and revolving loan can be drawn down upon the satisfaction of agreed conditions precedent which is expected to occur on or prior to March 31, 2012.
"This financing, combined with our existing cash resources, provide us with substantial flexibility over the upcoming year as we complete the development of Mareesburg and the construction of the concentrator within the next twelve months. We thank both UniCredit and Standard Bank for their ongoing support and commitment to Eastplats and are very pleased to be in such a well-capitalized position for this next stage of our corporate growth. We expect Mareesburg to be a low-cost operation that will deliver 100,000 PGM ounces per year at full production," said Ian Rozier, President and CEO of Eastplats.
Total shares issued and outstanding: 928,187,807
Cautionary Statement on Forward-Looking Information
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, changes in government legislation, controls, regulations and political developments.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contact Information
Eastern Platinum Limited
Investor Relations
+1-(604)-685-6851
+1-(604)-685-6493 (FAX)
info@eastplats.com
www.eastplats.com
NOMAD:
Canaccord Genuity Limited, London
Rob Collins
+44 20 7050 6500
rcollins@canaccordgenuity.com
Canaccord Genuity Limited, London
Bhavesh Patel
+44 20 7050 6500
bpatel@canaccordgenuity.com
JSE SPONSOR:
PSG Capital (Pty) Limited
Johan Fourie
+27 21 887 9602
johanf@psgcapital.com