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Alphamin Resources Announces Proposed Non-Brokered Private Placement of up to US$35M to Significantly Reduce Debt, Agreement in Principle for Improved Debt Terms and Initiation of Growth Projects
GRAND BAIE, Mauritius, April 27, 2020 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the “Company”) is pleased to announce:
About this update from Alphamin Resources Corp.
[{"type":"text","content":" GRAND BAIE, Mauritius, April 27, 2020 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the “Company”) is pleased to announce: A proposed non-brokered private placement of up to US$35m at C$0.14 per share as a prepayment against US$98m of senior secured debt (the “Credit Facility”) Agreement in principle for: º up to 31% reduction in debt resulting in significantly reduced interest rates on the outstanding balance, improved debt covenants and debt profile; º debt service headroom secured over the tenor of the remaining loans assuming a lower tin price environment; and º a strengthened balance sheet and lower debt commitments enabling the Company to maintain its critical path towards growth initiatives. Amendments to Credit Facility TermsLenders to the Company’s 80,75% subsidiary, Alphamin Bisie Mining S.A. (ABM), that owns the Bisie tin mine in the North Kivu region of the Democratic Republic of the Congo, have agreed in principle to the following revised Credit Facility terms - subject to a minimum US$31m principal prepayment and execution of the required Credit Facility amendment by the parties: Current key terms Revised key terms Interest rate Libor +14% Libor +10,5%* Interest payments US$1,3m per month reducing against capital repayments US$0,3m per month to December 2020. An average US$0,45m per month during 2021 and reducing from 2022 against capital repayments Debt capital repayments US$2,7m per month from July 2020 to June 2023 US$850k per month from July 2020 to Dec 2020#. US$2,1m per month from January 2021 to June 2023 Debt Service Cover Ratio covenant 1,75x 1,5x with waiver to 30 June 2021 Penalty on prepayment 3% payable in cash 1,7% payable in cash Cash sweep as mandatory payment against loans 30% of excess cash flows 50% of excess cash flows * Reverts to Libor +14% on outstanding loans from January 2022 with prepayment penalty reducing to 0% # Debt capital repayments subject to the LME tin price averaging above US$13,000/t for the month preceding payment These revised debt terms reduce Alphamin’s estimated break-even tin price, inclusive of debt servicing, by between US$2,000 to $3,000/t1 to an estimated US$13,000/t1...