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Ormonde Mining's JV tops up loan facility at Barruecopardo mine

Oaktree’s original US$100mln loan will also be accrued in full, at a rate of 15%, over new loan’s 12-month term. 

Ormonde Mining plc -
The mine at Barruecopardo

Ormonde Mining plc’s (LON:ORM) joint venture running the Barruecopardo tungsten mine has raised a further €US$10mln in debt finance from principal backer Oaktree.

The Term Loan provides Saloro with additional liquidity support as it establishes mining operations on the main orebody at Barruecopardo, Ormonde said.

Saloro can draw in tranches of at least €500,000 with interest at a rate of 18% per annum on drawn funds and a 3% pa commitment fee on undrawn amounts.

The JV has the option to replace the loan with cheaper sources of finance and discussions are underway with third-party banks.

Oaktree’s original US$100mln loan will also be accrued in full, at a rate of 15%, over new loan’s 12-month term. 

This will revert to 7% cash interest and 5% payment in kind (PIK) interest at the end of this period, should certain financial covenant tests be achieved, or 7% cash interest and 7% PIK interest if tests are not achieved.

Ormonde has 30% stake in Saloro with Oaktree owning the remainder.

Quick facts: Ormonde Mining plc

Price: 1.35 GBX

AIM:ORM
Market: AIM
Market Cap: £6.38 m
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