Oceana Gold has negotiated a new $200 million revolving
credit banking facility, with an eye to paying off more debt.
The new facility, provided by banking syndicate Barclays
Bank, BNP Paribas, Citibank N.A., HSBC and Nedbank Capital
PLC, will be used to repay the existing term facility of
$US117.8 million ($NZ134.32 million) and replaces the
existing undrawn revolving credit facility of $US50 million.
Following recent restructuring and new mine plans at Macraes
and Reefton, which cost respectively about 150 and 60 jobs,
Oceana continues to keep a tight leash on costs and repay
In its first quarter trading to March, Oceana said in April
it had paid off $US20 million debt and banking facilities and
cash in hand at the time had increased to $US91.2 million,
including $US42.1 million cash.
The former banking facility was due to mature on June 30,
The new facility is in place until June 2017.
Craigs Investment Partners broker Peter McIntyre said the
increase to $200 million and the extension to June 2017
provided Oceana with increased ''headroom'' for its operating
''If it's needed, Oceana will have on-call funds for any
short-term requirements which come up,'' he said.
Oceana chief executive Mick Wilkes said the new facility
meant the company could continue to strengthen its balance
sheet by repaying debt and increasing its cash position.
''The new facility also provides for additional liquidity and
flexibility which can be used, as necessary, for general
corporate purposes,'' he said in a statement.
The only details of the deal released by Mr Wilkes was it had
''competitive financial terms'' and ''maintains standard
corporate debt covenants''.