Advertisement

Archipelago Resources unveils new corporate financing facility

AIM-listed mid-cap gold producer Archipelago Resources' subsidiaries have entered into a new corporate financing agreement with Standard Chartered Bank and PT Bank Permata TBK, an update issued by the company has disclosed.

AIM-listed mid-cap gold producer Archipelago Resources' subsidiaries have entered into a new corporate financing agreement with Standard Chartered Bank and PT Bank Permata TBK, an update issued by the company has disclosed.

Under the facility agreement, Archipelago said it could make initial draw-downs totalling up to $100m. Thereafter, and subject to obtaining necessary approvals, Archipelago said it could also exercise an option to draw-down a further $60m.

Advertisement - Article continues below

The group said that the funds would be utilised for refinancing existing indebtedness of $43.5m owed to Permata and Standard Bank, and general corporate purposes if Archipelago wished to make further draw-downs in the future.

The group added that the funding supported Archipelago's balance sheet with reported cash and cash equivalents of $51m and gearing of 5.0% as of December 31st 2012, while also adding operational and strategic flexibility by providing a further source to finance growth initiatives. It said that financial close would be expected to occur over the coming month on completion of various conditions precedent.

In support of the facility agreement, Archipelago said that its subsidiaries would also enter into a five year exclusive off-take arrangement with Standard Chartered.

Colin Sutherland, Chief Financial Officer of Archipelago, commented: "In addition to on-going support from Permata, Archipelago looks forward to building a relationship with Standard Chartered. Both banks have a track record in financing growth companies in South East Asia and evidence a strong commitment to working with Archipelago."

He added: "Greater funding flexibility will support Archipelago's strong balance sheet and provides further foundation to pursue growth strategies."

Archipelago's share price was up 1.92% to 53p at 13:09 on Tuesday.

MF

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
Have small companies lost their edge?
Sponsored

Have small companies lost their edge?

SPONSORED CONTENT – The tectonic plates beneath the modern investing landscape appear to have started moving in new directions
26 Jun 2020