Aeris Resources is debt-free after repaying final US$20 million of senior debt facility

Aeris Resources Ltd has passed a crucial milestone in its growth path focused on copper and gold production by becoming free of debt. The established copper-gold producer and explorer has today repaid the outstanding US$20 million balance of its Tranche A senior debt facility with Special Portfolio Opportunity V Limited (SPOV), a subsidiary of a fund managed by PAG. “Particularly satisfying” Aeris’ executive chairman Andre Labuschagne said: “When I started with Aeris at the end of 2012 we had almost US$150 million in debt. Making this last repayment and finally being debt-free is particularly satisfying.” “I would like to thank SPOV, our financier since late 2015, for their support over the last five and a half years. "SPOV stood by the company during some challenging times and also supported us last year to purchase the Cracow Gold Mine. They have been a great partner to the business.” Shares are up 4.76% to 22 cents, approaching the new 8-year high of 23 cents set in June, while the market cap before opening was approximately $468.3 million. ANZ is senior banker Aeris has also today entered into arrangements for Australia and New Zealand Banking Group Limited (ANZ) to become the company’s senior banker. This will see ANZ provide a A$35 million Contingent Instrument Facility, a A$20 million Working Capital Facility and unsecured hedging lines for gold and FX. Labuschagne said: “We have had a long working relationship with ANZ, which has been further strengthened today as they now become our senior banker.” “Strong cash balance” ANZ’s CI Facility will cover Aeris’ environmental bonding and bank guarantee requirements. It releases approximately A$20 million in restricted cash that has been held as collateral against bonding/guarantee obligations. Following the repayment of the outstanding balance of the SPOV senior debt and release of the A$20 million in restricted cash, the net impact on the corporate cash balance is a reduction of A$7 million. The chairman added: “With a strong cash balance and financial flexibility, our focus is now to deliver on our development pipeline and aggressive exploration program planned for FY22.”