Sumatra Copper seeks additional funds from key shareholders
Thursday, March 31 2016 - 01:18 AM WIB
ASX-listed Sumatra Copper & Gold said Thursday it was seeking an additional US$2 million loan facility from its major shareholders Provident Minerals Pte Ltd and IDX-listed PT Saratoga Investama Sedaya Tbk.
Sumatra Copper said that the extra funds were needed to help pay interest on a $45 million debt owed by subsidiary PT Dwinad Nusa Sejahtera.
The company said that the additional $2 million facility will have the same terms under the $5 million convertible notes alrady issued last year. A $5 million working capital facility in the form of convertible notes was provided by Provident and Saratoga late last year for Sumatra Copper?s Tembang gold and silver mine project in South Sumatra.
Sumatra Copper said in the Thursday statement that $2 million of the note facility was drawn down in December of 2015, and $3 million in January 2016. It added that $2.5 million of the total $5 million was assigned by Provident to Saratoga.
Editing by Reiner Simanjuntak