Fin24

African Minerals seeks short-term funding

2012-11-21 17:55

IRON ore producer African Minerals said it would need financing in the short term as the company's revenue in the second half has been hit by wet weather, which reduced shipments from its flagship mine in Sierra Leone.

Shares in the company were down 7% at 240.5 pence at 12:53 on the London Stock Exchange.

African Minerals is in talks with Standard Bank to convert its existing $100m facility to a $100-$150m revolving credit facility before the end of 2012, it said.

The conversion of the debt facility is expected to provide $40 million to $90 million in additional liquidity to African Minerals.

"Even with the above necessary funding arrangements being successfully completed for the full amount before the end of 2012, the group has limited financial headroom," it said.