Business
New Contract Award & Finance Update
New Contract Award & Finance Update.
About this update from Capital Limited
[{"type":"text","content":"\n\n\n\n\nFor Immediate Release\n\n\n12 June 2023\n\n\n\n \n\n \nCapital Limited\n(\"Capital\", the \"Group\" or the \"Company\")\n \nNew Contract Award & Finance Update\nCapital (LSE: CAPD), a leading mining services company, is pleased to announce the award of a new mining services contract as well as an extension of our revolving credit facility. \nEarth moving & crushing services for Ivindo Iron SA, majority owned by Fortescue Metals Group (\"Fortescue\"), at the Ivindo Iron Ore Project (\"Ivindo\") in Gabon:\n· Ivindo is located in the northeast of Gabon and is one of the world's largest undeveloped, high-grade hematite iron ore deposits with the potential to become a globally significant iron ore mine;\n· Ivindo Iron SA (\"Ivindo Iron\") is the operating entity for the Belinga Project and Fortescue has a 72 per cent indirect interest in the company;\n· The contract has a term of up to 5 years and will generate approximately $30 million of revenue per annum once fully operational. The contract involves both earthmoving and crushing services. Capital will utilise existing equipment and is in the process of purchasing ~$15 million of additional equipment. The Company's capital expenditure guidance for FY23 is now expected in the range of $65 - 75 million (up from $50 - 60 million);\n· Capital has already begun mobilising equipment to the site. This mining & crushing services contract is in addition to the three-year reverse circulation and diamond drilling services contract with Ivindo, announced earlier this year, where drilling recently commenced.\nCompletion of further upsizing of our revolving credit facility (\"RCF\"): Capital has increased its revolving credit facility from $25 million to $50 million. As part of this upsize, Capital has formed a new banking relationship with one of the premier lenders in Africa, Nedbank Limited, who is co-lending this facility with the previous sole RCF lender Standard Bank Limited. This facility, alongside group cash flow, provides the Company with additional balance sheet flexibility to deliver on growth opportunities.\n \nCommenting on the contract win, Peter Stokes, Chief Executive Officer, said:\n'We are thrilled to have been a...