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Tiger Resources extends Taurus facility

Tiger Resources extends Taurus facility

Tiger Resources (ASX:TGS) has amended terms for the US$100 million acquisition finance facility from Taurus Mining Finance Fund to 31st January 2016 that will improve balance sheet liquidity.

This will also enable Tiger to look at long term funding alternatives, which are now at an advanced stage.

The facility was used to partially fund the acquisition of a 40% interest in the Kipoi Copper Project in the Democratic Republic of Congo. This is currently drawn to US$75 million.

Under the amended terms, Tiger has the right to extend the facility from 17th October 2015 (the current expiry date of the facility) to 31st January 2016 at an interest rate of 11% per annum.

The agreement is subject to the issue of 55 million options to Taurus with a four-year term exercisable at A$0.10, of which 7,911,609 will be issued immediately and the balance by 31st May 2015.

“The amended terms with Taurus provide for a significant improvement to Tiger’s balance sheet liquidity through 2015 while the company continues to pursue several long term funding alternatives, which are now at an advanced stage,” managing director Brad Marwood said.

In January, the company forecast 2015 production from its Kipoi Copper Project in the Democratic Republic of Congo to be 25,000 tonnes of copper cathode at an all-in sustaining cash cost of between US$1.57 and US$1.67 per pound.

It also expects to be in position to confirm timing of the Phase 2 expansion to 50,000 tonnes per annum once long term finance facilities are in place that are suitably to the projected Kipoi cashflow profile.

Project optimisation work continues with potential to lower mining costs versus feasibility assumptions. This also includes the reduction or removal of the tank leach (the majority of the Phase 3 capital estimate), which will further enhance project returns.



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Tiger Resources Ltd Timeline

Newswire
December 16 2015
Newswire
February 11 2015

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