briding finance , page-27

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OZ Minerals gets $140m bridging loan
January 22, 2009 - 8:41PM

Debt-laden OZ Minerals Ltd has secured a $140 million bridging finance facility that is repayable when it terminates at the end of next month.
The company is seeking to refinance $1 billion of debt by February 27 as its cash on hand dwindles.

``OZ Minerals is working to achieve a refinancing of its debt facilities by 27 February 2009 with the agreement of its lenders and, in that context, is actively pursuing both an asset sales program and other initiatives,'' the company said.

``Proceeds from the bridging facility are principally available to be used to cover expected short-term cash requirements in respect of the company's operations and projects at Golden Grove (WA), Prominent Hill (SA) and Martabe (Sumatra).''

OZ Minerals said the bridging facility will be provided by all of its `Facility A' lenders.

Facility A was drawn to $US420 million at December 10 and matures on February 27.

Oz Minerals wants the bridging facility to cover expected cash shortfalls at the Golden Grove base and precious metals mine in Western Australia, Prominent Hill copper and gold mine in South Australia and Martabe gold project in Indonesia.

However, the company earlier warned it may not be able to achieve refinancing by February 27 and was pursuing asset sales and other cost cutting measures including, placing its Avebury nickel mine in Tasmania on care and maintenance.

Two other debt facilities expire on February 27.

``This bridging finance facility provides the company with sure access to the short-term funding it needs whilst we finalise the refinancing of debt facilities,'' chief executive Andrew Michelmore said in a statement on Thursday.

Mr Michelmore said the company could not yet announce ``any firm outcome in respect of asset sales or other initiatives as these matters are still incomplete and subject to ongoing confidential negotiations''.

Separately, OZ Minerals has granted security over some of its Australian assets to Societe Generale, the lender of one of the facilities, as agreed on December 30.

The diversified miner said on Thursday that its cash balance was $122.1 million.

Its shares remain in a trading halt that was entered into in late November, when its shares last traded at 55 cents.