[miningmx.com] – KEATON Energy said it had secured a R300m term loan from Investec part of which it would use to retire R170m in existing debt used to construct the coal firm’s Vanggatfontein washing plant.
The balance of the term loan would be applied as part of the purchase of Xceed Resources, a junior miner that owns the Moabsvelden property. An additional R50m working capital facility was also agreed with Investec which would enable Keaton Energy to seize on opportunities “that may arise in the market”.
“We will conclude the Xceed acquisition on an all-cash basis as announced previously and, importantly, the replacement of the Vanggatfontein project finance debt with a term loan provides us not only with greater financial flexibility within the Keaton
group but also reduces our cost of capital,” said Mandi Glad, CEO of Keaton Energy.
