Western Areas enlarges and extends ANZ loan

Nickel miner Western Areas has secured $125 million in debt finance after revising its loan facility with ANZ.

Western Areas initially announced to the market in December that it sought to receive a $65 million loan from ANZ to fund exploration programs around the Forrestania region.

The miner said today the loan would be extended to March 2016 and enlarged to $125 million.

Western Areas is yet to draw down on the facility, and said it is expected to have sufficient capacity to cover a $110 million bond repayment due in July 2014.

Managing director Dan Lougher said the revised facility would give the company added flexibility.

“Most importantly it eliminates any perceived refinance risk that relates to the July 2014 maturity of the second tranche of convertible bonds,” Mr Lougher said in a statement.

At close of trade today, Western Areas shares were up 1 per cent, trading at $3.77.