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.

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

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021