Weatherly International PLC Rescheduling of repayment (3756P)

TIDMWTI

RNS Number : 3756P

Weatherly International PLC

31 August 2017

31 August 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 the first drawdown on the uncommitted US$10m loan; and that it has certain copper and currency hedges in place out to March 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"). Under the facility as amended by the Amendment and Restatement Agreement (the "Amended Facility"), the first repayment of Facility B has been deferred to 30 October 2017 and Orion has agreed, effective until 30 October 2017, to limit its acceleration and enforcement rights on the terms set out in the Amended Facility. The Facility B Final Maturity Date remains unchanged at 28 February 2020, and each Facility B repayment will be increased so that Facility B will be repayable in 11 equal repayments of US$9.7m each, including capital and interest. The second Facility B repayment is due on 30 November 2017, with subsequent Facility B payments due quarterly thereafter.

The repayment of US$10.3 million including capital and interest under Facilities C and D of the Amended Facility has been deferred until 30 October 2017.

Orion is a related party of the Company by virtue of Orion being a substantial shareholder in the Company and consequently the execution of the Amendment and Restatement Agreement is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors of Weatherly (being all of the directors other than Edwin Bennett, by virtue of his association with Orion) consider, having consulted with Weatherly's nominated adviser, RFC Ambrian Limited, that the terms of the Amendment and Restatement Agreement are fair and reasonable insofar as Weatherly's shareholders are concerned.

Loan draw downs and hedges

Weatherly advises it has drawn down US$2 million of the US$10 million uncommitted loan from Orion Mine Finance announced on 28(th) July 2017 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 March 2018, and some of these hedges were entered into prior to the recent upward movement in copper prices. Inclusive of hedges previously announced, Weatherly has 1000 tonnes per month fixed September to December at an average copper price of US$6,077 per tonne and US$ to N$ exchange rate of 13.38; and 1000 tonnes per month fixed January to March at an average copper price of US$6,464 per tonne and US$ to N$ exchange rate of 13.25.

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.

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 Advisor Contact: Stephen Allen / Bhavesh Patel

Broker Contact: Kim Eckhof

Blytheweigh [phone]

(Financial PR)

Tim Blythe / Camilla Horsfall / Nick Elwes

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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August 31, 2017 02:01 ET (06:01 GMT)