Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has refinanced South Korean corporate debt facilities that relate to the company’s Korean Metals Plant (KMP) by concluding bank loan facilities of ₩15 billion (~A$16.6 million).
These new debt facilities replace the Industrial Loan Facility and Overdraft Facility held with the Korean Development Bank (KDB) in South Korea.
The company previously drew down ₩15 billion (~A$16.6 million) of the Industrial Loan Facility to finance operating expenditure for the KMP. This opex loan was due for repayment on June 10, 2024.
New facilities
ASM’s new Korean debt facilities comprise:
- An unsecured loan facility of up to ₩3 billion (~A$3.3 million) from Hana Bank, with a repayment date of May 30, 2025.
- A secured loan facility of up to ₩12 billion (~A$13.3 million) from KDB, with a repayment date of June 10, 2025.
This refinancing extends the maturity date of the previous opex loan and provides financial flexibility for the company to continue to focus on ramp-up activities for the Korean Metals Plant at which critical metals are produced.