Mining company Kenmare Resources has said that its lenders have agreed to a debt restructuring plan.
Kenmare said it will receive a $100m investment from one of its main shareholders, the state general reserve fund of the Sultanate of Oman.
The company also said it will raise $275m in new equity of which $200m will be used to pay down debt. This will reduce its debt burden to a maximum of $100m.
Kenmare is one of the leading global producers of titanium minerals and zircon and it operates the Moma Titanium Minerals Mine in Mozambique.
The company’s managing director Michael Carvill said it was pleased that it had signed the deal for the investment of $100m by SGRF and are encouraged by the level of interest shown by a broad range of investors in the capital raise.
Mr Carvill also said that the company’s production and cost guidance for 2016 remains unchanged and the product market is already showing a long awaited improvement in prices, reversing four years of significant downward pressure.
Source: RTE News