Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has moved to restructure a debt facility provided by Macquarie Bank to finance the first stage of the Tomingley Gold Operations expansion in central New South Wales.
The company has increased the facility to $60 million from $50 million and extended the term to June 2027 from December 2026.
The repayments and forward sale deliveries have subsequently been amended to smooth the trajectory of the repayment profile.
Financial de-risking
“The increase in reserves at Roswell has given us the flexibility to restructure our existing debt facility to smooth the repayment profile,” Alkane Resources managing director Nic Earner said.
“Together with the put options we have put in place, which ensure our un-hedged production over the next three years should not be sold below A$3,000 per ounce, this is a further step to financially de-risking our business.”
The company says no additional ounces have been hedged, and no other changes have been made to the facility’s terms and conditions.
As noted in its recent quarterly report, ALK has purchased put options over 140,000 ounces of gold production with a strike price of A$3,000 per ounce, a move the company says provides price certainty while maintaining exposure to any gold prices above that level.
The company has total liquidity of about $95 million in cash and bullion as of the end of March this year, well-funded to complete the current stage of the Tomingley Extension Project and meet its capital requirements.