Mozambique Mining: Kenmare grid power restored and progress on financing amendment terms

Kenmare is pleased to announce that grid power was restored to the Mine on 28 March 2015, following the recent flooding in northern Mozambique. The company, one of the leading producers of titanium minerals, is pleased to announce that it agreed with its project lenders to extend the date for delivery of a budget for 2015 to 30 April 2015.

Kenmare, the project lenders and Absa Bank Limited (“Absa”), a member of Barclays,have made substantial progress towards agreeing the principal terms of a further financing amendment. This amendment remains subject to finalisation of terms, approval by each lender and their insurers and approval by the Irish Takeover Panel. The Company envisages that this deal will extend the maturity of the current facilities and substantially reduce fixed amortisation requirements in favour of a cash-sweep mechanism.

In conjunction with the financing amendment, project lenders are considering the provision of a new super-senior debt facility, which will rank ahead of existing debt, and may be drawn to service working capital and other requirements as necessary.(By Kenmare Resources)