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Sunday, April 29, 2018 7:10:59 PM
« ...In April 2014, Sibanye exercised its option to acquire the Burnstone operation through a Business Rescue process..... »
»...
Key terms of the Burnstone acquisition
Unique circumstances, unique funding structures 5
Offer
• Sibanye acquires 100% of issued share capital of Southgold (sole owner of Burnstone mine and assets)
• All shareholder loans and inter-group loans against Southgold Offer consideration
• Payment of $7.25 million on completion of transaction
• Total debt reduced by 55% to $177.3 million, back-ranked to new funding and ring-fenced to and repaid from Burnstone free cash flow
« New funding
• Sibanye to provide up to R 950 million, over time, as working capital to support chosen production plan
• Sibanye loan attracts interest at JIBAR +4% (~9.5%)
• Sibanye loan to be repaid first:
• 90% free cash to shareholder loan; 10% to debt
Debt settlement
• On settlement of the Sibanye loan and interest, debt will be repaid from free cash flow:
• 70% to shareholder loan; 30% to debt
• moratorium on interest and capital repayments for 36 months from transaction completion
• Debt attracts interest at LIBOR +4% (~4.5%)
• Option to settle outstanding balances at any time without penalty
• Bank debt ring-fenced to Burnstone ... »
https://thevault.exchange/?get_group_doc=245/1471265156-update2016-04-burnstone-project.pdf
https://www.pressreader.com/canada/stockwatch-daily/20170112/281483571072397
Why did the court case collapse?
Millej9, « ...Sibanye exercised its option to acquire the Burnstone operation through a Business Rescue process..... »
Will Sibanye, decide or be forced by Standard Bank Credit Suisse etc... to honor the South African Business Rescue? Who knows? http://cfcanada.fticonsulting.com/GBGL/
https://miningwatch.ca/sites/default/files/hdi_investor_report.pdf
»...
Key terms of the Burnstone acquisition
Unique circumstances, unique funding structures 5
Offer
• Sibanye acquires 100% of issued share capital of Southgold (sole owner of Burnstone mine and assets)
• All shareholder loans and inter-group loans against Southgold Offer consideration
• Payment of $7.25 million on completion of transaction
• Total debt reduced by 55% to $177.3 million, back-ranked to new funding and ring-fenced to and repaid from Burnstone free cash flow
« New funding
• Sibanye to provide up to R 950 million, over time, as working capital to support chosen production plan
• Sibanye loan attracts interest at JIBAR +4% (~9.5%)
• Sibanye loan to be repaid first:
• 90% free cash to shareholder loan; 10% to debt
Debt settlement
• On settlement of the Sibanye loan and interest, debt will be repaid from free cash flow:
• 70% to shareholder loan; 30% to debt
• moratorium on interest and capital repayments for 36 months from transaction completion
• Debt attracts interest at LIBOR +4% (~4.5%)
• Option to settle outstanding balances at any time without penalty
• Bank debt ring-fenced to Burnstone ... »
https://thevault.exchange/?get_group_doc=245/1471265156-update2016-04-burnstone-project.pdf
https://www.pressreader.com/canada/stockwatch-daily/20170112/281483571072397
Why did the court case collapse?
Millej9, « ...Sibanye exercised its option to acquire the Burnstone operation through a Business Rescue process..... »
Will Sibanye, decide or be forced by Standard Bank Credit Suisse etc... to honor the South African Business Rescue? Who knows? http://cfcanada.fticonsulting.com/GBGL/
https://miningwatch.ca/sites/default/files/hdi_investor_report.pdf
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