--UPDATE adds broker comment--
Aminex (LON:AEX) told investors it still expects ‘first gas’ from the Kiliwani North field in ‘mid-2015’, and it has now extended a US$7.6mln loan facility by six months to January 31 2016.
A gas sales agreement for Kiliwani North is now complete except for finalised payment protection clauses and guarantees.
Aminex added that it is currently in talks with a substantial financial group which is willing to provide a loan that will enable the company to pay-down existing debt and continue the development of its Tanzanian assets - including the Ruvuma PSC as well as Kiliwani North.
“The board of the company has a reasonable expectation that an initial part of such a facility would be available prior to the commencement of production and will not be conditional on signature of the GSA in Tanzania or commencement of production,” the company said.
Aminex’s refinancing efforts have been boosted by the recently completed competent persons report, which confirmed 28bn cubic feet of contingent gas resources at Kiliwani and 70bn cubic feet for the Ntorya project within the Ruvuma PSC.
SP Angel analyst Zac Phillips in a note highlighted that Aminex is nearing a point where it will be generating revenue and free cash flow, which it will be able to borrow against, and the company can start to look to the future.
“While there are a number of moving parts to today's news, the main take away from the news is that the company's creditor has provided it with some latitude in repayment of the outstanding loan,” the analyst said.
“This breathing room provides the technical team with the space to be able to complete the commissioning phase with sufficient space so as to ensure that everything is addressed appropriately, rather than rushing to complete.”