Iron ore producer Ferrexpo (LON:FXPO) has secured a new credit facility of US$420 million to help it continue development of its “significant project pipeline”.
Under the terms of the arrangement, the facility can be drawn at any time during the loan term which has a maturity of five years including amortisation over two years.
The credit facility carries a cost of 225 basis points above the London Inter-Bank Offered Rate (the rate at which international banks lend to each other) on drawn amounts, and will initially remain undrawn.
CFO Chris Mawe said: "This new credit facility is testimony to the strength of Ferrexpo's balance sheet and the quality of the business.
“The size and tenor of the facility complements the group's recent US$500 million Eurobond issue and provides the necessary financial flexibility to continue to develop the group's significant project pipeline."
Meanwhile, another iron ore firm Bellzone Mining (LON:BZM) told investors this morning that its Forécariah iron ore project in Guinea remained on track for production in the first quarter next year.
Long lead items such as the crushing and screening plant, the road haulage and mining fleet and earth moving equipment have been ordered.
Clearing work on 76 kilometres of new road to be laid has been completed, while three of the five construction contracts have been awarded, Bellzone revealed.
At the same time a study assessing the feasibility of using the port of Konta for exports has been completed.
Approval to start land acquisition and clearance has been submitted to the government and is expected to commence this month, the company said.
In other news, the food and support services firm Compass Group (LON:CPG) revealed today the acquisition of Cygnet Foods Holdings, which is a specialist provider of school meals to the state education sector.
Cygnet boasted revenues of £9.3 million and gross assets of £2.2m for its year to December 2010 and its portfolio comprises over 450 schools across England.
The business delivers both hot and ready to heat meals, prepared in line with the government's health and wellbeing guidelines, to schools that do not have the necessary catering facilities onsite.
USA-focused oil and gas firm Sefton Resources (LON:SER) reported a rise in first half revenues today on the back of higher selling prices.
Revenues rose to US$2.03 million in the first half to the end of June this year from US$1.93 million a year earlier. However, profits fell due to higher costs and administrative expenses. Operating profit was down at US$200,000 from US$464,000 previously.
Oil production in the first half fell 29 percent year-on-year to an average daily production rate of 110 barrels of oil per day attributed mainly to the Tapia Canyon field infrastructure repair and well maintenance activities. During June 2011, production picked up somewhat to average 118 bopd.
Chairman Jim Ellerton said "Operationally, the company took a number of significant steps to develop the group's assets and pursue opportunities to maximise revenues both in the short and the medium term.
"The board looks forward to being able to announce the results of the thermal steam simulation study on the Tapia oil field in California that is expected to be received in October 2011, as well as further evaluation of our Kansas holdings.
He added that in upcoming weeks, the company will be issuing an operations update that will include the most current oil production rates in California and the progress of our activities in Kansas to begin gathering and transporting gas and producing and selling oil and gas.