NQ Minerals PLC - US$55m Hellyer Mine Debt Facility Closed with ING
NQ Minerals Plc
The funds from the ING Facility are being used to immediately retire all project debt maturing in 2020. This project debt was secured over the assets of, and shares in, Hellyer, the Company's tailings reprocessing project in
At the same time, Hellyer has signed life-of-mine marketing agreements with Traxys Europe S.A. ("Traxys") for the purchase of all the metal concentrates to be produced from its tailings reprocessing activities.
The ING Facility has a 6-year duration with scheduled monthly amortization repayments of principal commencing in
The ING Facility is secured on a senior basis over the assets of Hellyer, which consist of the tailings reserves and the processing plant at the Hellyer site, as well as the shares in Hellyer, which is 100% owned by NQ. The facility agreement includes reporting, cash management, hedging, prepayment and covenant arrangements and obligations that are tailored for a debt facility of this nature. The Company's existing intercreditor arrangements have been amended to accommodate the consequent changes to NQ's lender group, as well as to its pre-existing security agreements and streaming arrangements.
The ING Facility bears an initial interest rate of Libor plus 6.5% p.a. which falls to Libor plus 6% p.a. once hedges have been executed and this is expected to generate interest savings for Hellyer of about
NQ Mineral's Chairman, David Lenigas, said;
"The signing of this
"I would like to thank the many people, within ING, our project funders and NQ, as well as all the respective legal teams, who have worked tirelessly on closing this important facility. In particular, I would like to also thank the Traxys team who, in addition to their initial project funding of Hellyer and marketing the Hellyer concentrates, introduced the Company to ING and have assisted at each step in the refinance process.
"The ability to complete the agreement against a backdrop of the Covid 19 pandemic is a testament to the effort and excellent collaboration between each of the parties throughout the process."
Competent Person's Statement
The information in this report that relates to the Hellyer project is based on information compiled by Mr.
About NQ Minerals
NQ Minerals Plc is listed on
NQ Minerals operations are in
ING is a global financial institution with a strong European base, offering retail and wholesale banking services to customers in over 40 countries. Sustainability forms an integral part of ING's strategy, evidenced by ING's leading position in sector benchmarks by Sustainalytics and MSCI and our 'A-list' rating by CDP. ING Group shares are included in major sustainability and Environmental, Social and Governance (ESG) index products of leading providers STOXX, Morningstar and FTSE Russell.
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The United States Securities and Exchange Commission ("SEC") permits US Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Any estimates of mineral resources shown in this press release or on NQ Minerals PLC's website have been prepared in accordance with definition standards of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves produced by the Australasian Joint Ore Reserves Committee, which may differ from definition standards of the United States Securities and Exchange Commission ("SEC") Industry Guide 7. We may use certain terms which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC.
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This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements based on current expectations, estimates, forecasts, and projections, including those related to our growth strategy, mineral estimates and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to our growth strategy; risks relating to exploration, development and/or extraction; our ability to obtain, perform under, and maintain financing and strategic agreements and relationships; our ability to attract, integrate, and retain key personnel; global demand for mineral resources; our need for substantial additional funds; government regulation; as well as other risks. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.
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