Copper-focused Tiger Resources has secured a $US18.2 million ($A22.9 million) facility agreement with two of its existing lenders, to fund ongoing work it its Kipoi operation in Africa whilst it pursues recapitalisation plans.
Perth-based Tiger said the facility provided interim funding to support its ongoing operations at Kipoi, as well as the development of an updated life of mine plan for the asset, located in the Democratic Republic of Congo.
It is also undertaking a restructuring and recapitalisation process, and has entered into a deed of forbearance with its lenders.
“The deed of forbearance provides the company with a platform to use its best endeavours to facilitate investment in the company to restructure its balance sheet and recapitalise the company,” Tiger said in a statement.
“The finance facility and the deed of forbearance demonstrate the lenders’ continued support for the company.
“The lenders have agreed to continue to waive repayment of principal and to capitalise interest on their existing secured debt facilities for not less than 12 months.”
Chief executive Brad Sampson said the further financial support came at a time when the company is seeking to turnaround performance and recapitalise the business.
“The lenders’ continued support recognises the operational improvements made since February by the new management team and the potential of the Kipoi copper project to generate substantial value in the long term,” he said.
Tiger’s shares remain suspended from trade. They were last worth 4.9 cents each when trading was first suspended in February.
