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- Mining company Stanmore Coal (SMR) has received a formal notice from Taurus Mining Finance, cancelling two of its facilities
- No further drawdowns are available, and Stanmore must repay all outstanding facility commitments before September 16, 2020
- Stanmore has signed a term sheet with Golden Energy and Resources (GEAR) for an approximately US$40 million (approximately A$58 million) loan facility
- The company will work with both Taurus and GEAR through its transition from one facility to another
- Stanmore Coal is up 0.61 per cent on the market today, trading for 82.5 cents per share
Mining company Stanmore Coal (SMR) has received a formal notice from Taurus Mining Finance, cancelling two of its facilities.
The notice announced the imminent cancellation of a bonding facility and undrawn working capital facility, following a change of the control in the company. Since June 18, 2020, Stanmore Coal has utilised US$12.48 million (approximately A$18 million) under its bonding facility with Taurus.
No amounts are currently outstanding under the working capital facility from Taurus. Additionally, no further drawdowns will be available to the company, as of today.
The cancellation date for the two facilities is September 16, 2020. By this date, Stanmore Coal must repay any outstanding facility commitments to Taurus.
Seeking financing elsewhere, Stanmore Coal has signed a non-binding term sheet with its parent entity, Golden Energy and Resources (GEAR). The agreement is for a term loan facility of approximately US$40 million (approximately A$58 million), with terms similar to those offered by Taurus.
Stanmore Coal is now working to meet the conditions precedent for the GEAR loan facility.
If successful, the company will secure the loan facility until June 30, 2022, at an upfront fee of two per cent. GEAR will offer an eight per cent yearly interest rate on drawn funds, and a two per cent yearly rate on undrawn funds.
Stanmore Coal will work with both Taurus and GEAR, to ensure a smooth transition from the old facility to the new one. The company intends to refinance its Taurus bond facility by using its existing cash, or the proposed GEAR facility.
Stanmore Coal is up 0.61 per cent on the market today, trading for 82.5 cents per share.
