Kenmare agrees new deadline for restructuring deal

Irish titanium and zircon miner Kenmare Resources, which operates the Moma Titanium Minerals Mine in northern Mozambique, has announced yet another extension of a deadline to finance a deal with lenders on restructuring its debt.

Kenmare said on Tuesday it had agreed with its project lenders to extend the date for delivery of a budget for 2015 till the end of April. This is the third time that the deadline has been pushed back.

The exploration company said it has made substantial progress in putting together a revised finance agreement which will extend the maturity of the current facilities and substantially reduce fixed amortisation requirements in favour of a cash-sweep mechanism.

In conjunction with the financing amendment, project lenders are considering the provision of a new super-senior debt facility that would rank ahead of existing debt, and could be drawn to service working capital and other requirements as necessary.

Kenmare also said on Tuesday that grid power was restored to the Moma mine earlier this week, following the recent flooding in northern Mozambique.