Narrative
Full Description
Project narrative
On July 31, 2009, the Bank of China (BOC) entered into a $49.5 million USD loan agreement with Perilya Limited, an Australian mining company, to fund the termination of Perilya's silver agreement with Coeur d’Alene Mines Corporation. This facility carried a rolling maturity period of 12 months with options for Perilya to extend the facility by two years, an interest rate of 1-month LIBOR plus a margin of 2.1% per annum, and was not secured by (i.e. collateralized against) any assets of Perilya. This facility was provided via a guarantee facility granted by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, Perilya's majority shareholder, for which Perilya was charged 0.6% per annum. This loan had a total cost of Perilya, summing the bank and facility fees, the margin, and the guarantee fee, of less than 3% plus LIBOR. Record ID#94015 captures this loan. The termination of the silver agreement released Perilya from its obligation to deliver an additional 11.2 million ounces of silver from its Broken Hill mine. On July 31, 2010, BOC extended the maturity period of the $49.5 million USD facility by another year per the terms and conditions of the loan agreement. Record ID#94017 captures this extension. Perilya fully repaid this facility in July 2011.
Staff comments
1. Perilya Limited is an Australian base and precious metals mining and exploration company, which owns and operates the Broken Hill zinc, lead, silver mine in New South Wales Australia and, with its takeover of GlobeStar Mining Corporation in December 2010, the Cerro de Maimón copper, gold, and silver mine in the Dominican Republic. In addition to its mining operations, Perilya Limited has an active exploration and development program which includes exploration and development programs in the Broken Hill region of New South Wales and in the Flinders region of South Australia in the vicinity of its Beltana zinc silicate project. Perilya Limited also has extensive exploration programs underway on its Dominican Republic mining and exploration concessions that include a laterite nickel project and highly prospective copper, gold & silver targets near its Cerro de Maimón mine. Perilya Limited is reviewing options for the development of the Mount Oxide Copper Project in the Mount Isa region in Queensland. In addition, Perilya Limited has a 60% interest in the Moblan lithium project located in Quebec, Canada, which is currently undergoing a development study (the remaining 40% is held by SOQUEM, which is an investment company owned by the Quebec Government in Canada) (see pdf pg.2 of "Despatch of Scheme Booklet - Perilya Limited"). 2. As of 2009, Perilya Limited was owned 53.37% by Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd, China’s third largest zinc producer. However, on September 3, 2013, Perilya Limited announced that it had entered into a binding Scheme Implementation Agreement (SIA) with its major shareholder, Zhongjin Lingnan Mining (HK) Company Limited, a wholly owned subsidiary of Shenzhen Zhongjin Lingnan Nonfemet Co., Limited, under which Zhongjin Lingnan would acquire all the outstanding shares in Perilya that it did not already own by way of a Court approved Scheme of Arrangement for an offer consideration of $0.35 AUD per share (see "Zhongjin Lingnan Proposal to acquire Perilya at $0.35 per share"). The acquisition of the remaining shares was successful (see "Perilya Limited - Company Profile Report"). 3. The average 1-month LIBOR for July 2010 was 0.344%. Therefore, the interest rate has been coded as 0.334% plus 2.1%, or 2.434%.