Rollover of US$80 million subordinated debt facility Establishment of new working capital facility PanAust Limited is pleased to announce that it has agreed terms with Goldman Sachs JBWere for the rollover of its US$80 million subordinated debt facility (GSJBW facility) by more than one year to a new maturity date of 31 March 2010. Managing Director, Gary Stafford, said the agreed rollover of the GSJBW facility would significantly improve PanAust’s debt profile at a time when there is significant investor focus on this issue. “In parallel with negotiating rollover terms with GSJBW, PanAust has identified several potential funding sources to ultimately replace the GSJBW facility. Consequently, we believe we will be able refinance the facility well before the new maturity date in 2010,” Mr Stafford said. In a separate transaction, PanAust has entered into an US$8.1 million revolving working capital facility for the Phu Kham Project with three banks from the Senior Project Facility. Phu Kham is cashflow positive, has no development capital commitments and continues to perform exceptionally well with ore grades scheduled to rise through 2009 for copper production of over 65,000 tonnes, gold production of 70,000 to 80,000 ounces and cash costs less than US$0.90/lb1. Mr Stafford said, “It is encouraging that financial institutions are prepared to lend new money or extend existing facilities to companies with cost competitive and quality mining operations despite the prevailing liquidity constraints within global credit markets.”
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