Central Asia Metals PLC refinanced its debt, consolidating all of its borrowings into one facility, it said Jan. 4.
The company inherited US$67 million of debt as part of the US$402.5 million acquisition of the Sasa zinc-lead mine in Macedonia and borrowed a further US$120 million from off-take partner Traxys to fund the acquisition, resulting in total debt of US$187 million in November 2017.
Central Asia Metals increased the Traxys facility in December 2018 by US$60 million to US$151 million and used the proceeds to repay the Sasa facility in full and a local bank working capital facility, plus accrued interest.
The corporate debt facility will accrue interest at 4.75% plus the one-month U.S. dollar London interbank offered rate and will be repaid monthly on a straight-line basis within four years with no requirement for cash sweeps.
CEO Nigel Robinson said paying off the Sasa debt will allow the company to restructure and simplify its Sasa corporate structure, which it expects to complete in the first quarter of 2019.