Finders ups stake in Wetar copper project, completes debt restructuring

By Romel S. Gurky

ASX-listed Finders Resources Limited announced Friday that the debt restructuring of its Indonesian subsidiary PT Batutua Tembaga Raya (BTR), operator of the Wetar copper project in Maluku Barat Daya Regency, Maluku Province, has been completed.

The company also said that it has raised its stake in the project from to 73.5 percent from 72 percent.

Finders said in a statement that following the hedge restructure announced on September 15, 2016, which yielded proceeds of US$42.5 million, a number of additional changes were made to the senior debt facilities including:
? Minimum mandatory copper hedging for 2017 - 2019 reduced from 32,951 tons to 16,476 tons;
? Additional discretionary hedging lines available for up to 6,000 tons of copper; and
? Repayment profile amended to reflect the revised cashflow profile of the Wetar copper project.

Finders said it has also completed a placement of shares to raise A$12 million as previously announced to the market on November 10, 2016. A portion of the proceeds raised from the placement was invested into BTR to be applied towards resource development, new projects and working capital, Finders said. This investment increased Finders equity ownership in the Wetar Copper Project from 72 percent to 73.5 percent following the dilution of joint venture partner Posco Daewoo Corporation.

Managing Director Barry Cahill commented: ?With the successful debt restructure behind us and with the new 25,000 t.p.a. copper cathode SX-EW plant operating at nameplate capacity, our efforts can now be redirected towards debt reduction following the recent improvement in the copper price and to growing the oroject?s mine life. I look forward to providing further details on our resource expansion and exploration initiatives in the near future.?

Editing by Reiner Simanjuntak