Weatherly International PLC Loan repayment update (2760A)

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RNS Number : 2760A

Weatherly International PLC

27 December 2017

27 December 2017

This announcement includes release of insider information

Weatherly International plc (AIM:WTI)

("Weatherly" or "the Company")

Rescheduling of repayment

Summary

Weatherly announces that debt repayments due to Orion Mine Finance (Master) Fund I LP ("Orion") have been rescheduled; that the Company has made one drawdown of US$1m on the uncommitted US$10m loan since the last rescheduling on 31 October 2017; and that it has certain copper and currency hedges in place out to June 2018.

Debt Financing and rescheduling of repayments

Weatherly has entered into a further amendment and restatement agreement in relation to its existing facility with Orion (the "Amendment and Restatement Agreement"). The first repayment of Facility B, previously due on 31 December 2017 is now due on 31 March 2018 and payable quarterly until 31 December 2019 with a final payment due on 28 February 2020. The Facility B Final Maturity Date remains unchanged at 28 February 2020. Facility B will be repayable in 8 equal repayments of capital and accrued interest of US11.0m, with the balance of US$22.1 payable on 28 February 2020. Repayment of capital and accrued interest of US$10.7m under Facilities C and D of the Amended Facility has been deferred until 31 March 2018. Orion has agreed, effective until 31 December 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility.

Loan draw downs and hedges

Weatherly advises it made a second drawdown of US$1m in early November on the US$10 million uncommitted loan from Orion Mine Finance announced on 28 July 2017 bringing the total drawdown to US$3m. The drawdown was to accelerate the building of the leach pads and to fund working capital requirements at Tschudi. To seek to ensure the loan would be sufficient to meet the necessary funding requirements the Company has hedged both copper and currency out to June 2018. In addition to hedges previously announced, Weatherly has 990 tonnes fixed in June at an average copper price of US$6,880 per tonne, half of which is also fixed at a N$ to US$ exchange rate of 14.15.

As previously advised on 28 April 2017 as a loan rescheduling fee, Orion has the right (but not the obligation) to buy, if available, up to 700 tonnes of unhedged cathode each month from Weatherly until 30 April 2018 at a price of US$6000 per tonne. Orion can only exercise its option to the extent of unhedged tonnes produced in the month. So far this financial year Orion have not elected to exercise their option.

The Company and its subsidiaries are unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. The Company continues to positively engage with Orion on the subject.

For further information please contact:

   Weatherly International plc                                                 [phone] 

Craig Thomas, Chief Executive Officer

Kevin Ellis, CFO and Company Secretary

   RFC Ambrian Limited                                                     [phone] 

(Nominated Adviser & Broker)

Nominated Adviser Contact: Stephen Allen / Bhavesh Patel

Broker Contact: Charlie Cryer

About Weatherly

Weatherly is an AIM listed copper mining company operating in Namibia in southern Africa. Its principal assets are one operating open pit copper mine called Tschudi and two underground copper projects called Otjihase and Matchless.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 27, 2017 02:00 ET (07:00 GMT)