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Australian Strategic Materials refinances Korean debt facilities

Published 11/06/2024, 01:56 pm
Updated 11/06/2024, 02:00 pm
© Reuters.  Australian Strategic Materials refinances Korean debt facilities

Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has refinanced South Korean corporate debt facilities that relate to the company’s Korean Metals Plant (KMP) by concluding bank loan facilities of ₩15 billion (~A$16.6 million).

These new debt facilities replace the Industrial Loan Facility and Overdraft Facility held with the Korean Development Bank (KDB) in South Korea.

The company previously drew down ₩15 billion (~A$16.6 million) of the Industrial Loan Facility to finance operating expenditure for the KMP. This opex loan was due for repayment on June 10, 2024.

New facilities

ASM’s new Korean debt facilities comprise:

  • An unsecured loan facility of up to ₩3 billion (~A$3.3 million) from Hana Bank, with a repayment date of May 30, 2025.
  • A secured loan facility of up to ₩12 billion (~A$13.3 million) from KDB, with a repayment date of June 10, 2025.
  • This refinancing extends the maturity date of the previous opex loan and provides financial flexibility for the company to continue to focus on ramp-up activities for the Korean Metals Plant at which critical metals are produced.

    Read more on Proactive Investors AU

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