Coal development firm Waterberg Coal Company, said finance of about A$35m (R319m) which fell due yesterday has been rolled over while the company attempts to finalise refinancing with an undisclosed third party. On Thursday Standard Bank South Africa (SBSA) kept Waterberg Coal Company’s expired loan facility rolling on a daily “on demand” basis to allow the company to make alternative funding arrangements.
Third part dialogue
Initially WCC was in discussion last year with SBSA to extend the maturity date of a loan with the bank beyond October 9th. WCC had originally used the proceeds from the Standard Bank loan to buy control of the Waterberg Coal Project, in South Africa’s Limpopo province, in 2013. Yesterday WCC said the dialogue with the third party was also to finance an export thermal coal mine as well as retire current group indebtedness.
“With respect to the facility with SBSA, the company wishes to advise that it has been in discussions with SBSA in respect of arrangements for a proposed “refinancing” of the current facility to be funded by a third party,” it said in the announcement.
“The third party discussions are in process and SBSA has advised that they intend to maintain the facility as ‘on demand’, rolling on a daily basis, to give these discussions time to progress,” said WCC.
For now shares in WCC would remain suspended until further notice.