Gemfield’s Finalizes $65 Million Debt Financing Facilities
July 04, 16
(IDEX Online News) – Ruby and emerald miner Gemfields plc has announced the finalization of four debt financing facilities, having considered a number of alternatives from various banks.
The ruby operations at the Montepuez mine will receive $45 million, which will be divided into three $15 million facilities. One unsecured overdraft facility was entered into with Barclays Bank Mozambique, another with Banco Comercial E De Investimentos, and the last of which is a finance leasing facility with BCI.
The remaining $20 million is a financing facility with Macquarie Bank Limited, the security of which comprises a floating charge over the jewelry and cut and polished gemstones of Fabergé (UK).
“The Facilities, together with Kagem's existing revolving credit facility of USD 30 million with Barclays Bank in Zambia, provides Gemfields with the necessary funding to sustain its growth and expansion plans to increase annual production to approximately 20 million carats of rough rubies in MRM and more than 40 million carats of rough emeralds in Kagem within the next 3 years,” said Gemfields CFO Janet Boyce.
“Lastly they also assist in smoothing the Company's cash flows given the intermittent nature of revenue in-flows from the coloured gemstone auctions."