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Weatherly International reschedules loan repayments

Published: 10:45 02 Jun 2016 BST

Tschudi
The company owns and operates the Tschudi copper mine in Namibia

Copper miner Weatherly International plc (LON:WTI) has struck a deal with its largest shareholder to reschedule its loan repayment.

The company said Tuesday that weak copper prices meant it was unlikely to meet the first repayment due to Orion Mine Finance, which was due that day.

The first repayment of facility B loans has now been deferred until February 28 next year, although the final maturity date of February 29, 2020 remains unchanged.

Each facility B repayment will now be increased to pay off the loan in 13 equal repayments.

As a loan rescheduling fee, Orion will have the right to buy 700 tonnes of cathode each month from Weatherly’s subsidiary company Ongopolo Mining Limited at a price of US$5,000 per tonne, between July 1 and May 31, 2017.

Weatherly says the US$8.6mln lent under facilities C and D remains unchanged, with facility C due for repayment at the end of August, and facility D on December 9.

The company owns and operates the Tschudi copper mine in Namibia, which has a mine life of 11 years and a plant design capacity of 17,000 tonnes per annum.

Shares were up 0.07p, 0r 10%, to 0.82p in early London trading.

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