JOHANNESBURG (miningweekly.com) – ASX-listed Maca on Monday provided a secured $14.3-million loan, on commercial terms, to support the recapitalisation of Blackham Resources.
The proceeds of the loan have been applied by Blackham to repay the Orion mine finance term loan, which was due to mature on December 31, and subsequently extended to January 15.
“We are pleased to be able to provide this support to Blackham. Following successful completion of the entitlements issue, Blackham will be well positioned to execute its forward plans,” said Maca MD Chris Tuckwell.
Maca is Blackham’s key mining contractor.
The next stage of Blackham’s recapitalisation involves an entitlements Issue to raise about $35.9-million, $13-million of which is underwritten by Maca, Orion and Pybar Mining Services.
“Proceeds from the entitlements Issue will result in the balance of Orion’s residual facilities being reduced from $23-million to $20.5-million through Orion’s agreement to sub-underwrite up to $2.5-million of the entitlements Issue,” he explained, adding that Maca and Pybar have agreed to sub-underwrite a respective $8-million and $2.5-million for the reduction of Blackham’s respective trade receivable balances.