Frontier Mining adjusts financing arrangements
Mar 28. Proactive Investors UK
By Jamie Ashcroft
Kazakhstan focussed copper producer Frontiner Mining (LON:FML) says it is well positioned to achieve its targets after reaching agreements over its existing financing.
In a statement the miner revealed it has extended its US$35mln loan with Sberbank Kazakhstan to October 2018, and repayments on the loan won’t start until next April.
A separate loan to pay for the expansion of the Benkala mine has now been approved locally, and it is now awaiting sign off from Sberbank’s head office in Moscow.
The company is also in talks with RK Capital Management to restructure US$10mln of loan notes, and in the meantime the term of the notes have been extended.
Also US$2.4mln of loan notes held by Central Asian Education Services have been extended by three months to July 28 2012, and US$1.6mln held by NNEF will be extended by four months to August 19 2012.
These arrangements come before the restart of mining following the winter break, and Frontier said the flexibility of the loan note holders will facilitate a timely restart of operations.
“The senior management team have worked tirelessly for several months, engaging in lengthy negotiations to ensure the financial stability of the company,” said chief executive Yerlan Aliyev.
“I’m delighted to report that our endeavours have proved successful and that Frontier is well positioned to achieve the targets planned for 2013.
“The continued financial support we are offered should further encourage investors to take confidence in the long-term potential that Benkala presents to shareholders”.
Frontier Mining Limited is a copper exploration and development company with a focus on Kazakhstan. The Company’s main activity is the Benkala Copper Project in North West Kazakhstan, which forms part of the Urals copper gold ore belt. Frontier has a 100% interest in Benkala through its subsidiary KazCopper LLP.