- Eastern Platinum (ELR) signs finance facility agreement with Investec Bank
- The interest rate on this financing deal is based on the 3-month Johannesburg Interbank Average Rate plus 150 bonus points
- This means immediate pay-out to the company on the PGM concentrate delivery date
- For a maximum size of credit facility of C$11.3 million
- Eastern Platinum (ELR) owns, directly and indirectly, a number of platinum group metal and chrome assets in the Republic of South Africa
- Eastern Platinum (ELR) is unchanged today, trading at C$0.20 at 3:56 pm ET
Eastern Platinum (ELR) has signed a finance facility agreement with Investec Bank.
The funds will be used for working capital purposes and funding the restart of the Zandfontein underground section of its flagship Crocodile River Mine, located near Brits, South Africa. Investec is a leading South African international banking and wealth management group.
This secures a renewable 12-month revolving commodity finance facility secured by platinum group metal (PGM) production from the tailings storage facility at the mine.
The interest rate on this financing deal is based on the 3-month Johannesburg Interbank Average Rate plus 150 bonus points. Subject to the credit quality of the PGM off-taker on an annual basis.
This means immediate pay-out to the company on the PGM concentrate delivery date. For a maximum size of credit facility of C$11.3 million. It also guarantees prices through a fixed-price swap hedge overlay on platinum, palladium, rhodium, and gold minerals.
Wanjin Yang, Chief Executive Officer and President of the company commented on the financing.
“We thank Investec for its support and commitment to Eastplats. We look forward to working with Investec as we restart the Zandfontein underground section and develop our eastern limb projects. This facility is a result of the hard work of our respective teams over the past several months.”
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource to produce PGM and chrome concentrates from the Barplats Zandfontein tailings dam.
Investec partners with private, institutional, and corporate clients, offering international banking, investment, and wealth management services in two principal markets, South Africa and the United Kingdom, as well as certain other countries.
Eastern Platinum (ELR) owns, directly and indirectly, a number of platinum group metal and chrome assets in the Republic of South Africa.
Eastern Platinum (ELR) is unchanged today, trading at C$0.20 at 3:56 pm ET.
