NQ Minerals negotiates $60 million six-year loan at Libor plus 500 bps

By Marisa Wong

Los Angeles, March 2 – NQ Minerals plc and subsidiary Hellyer Gold Mines Pty. Ltd. entered into an agreement with the Traxys Group and a leading European natural resource bank for a $60 million debt facility, according to a press release.

The new debt transaction is part of NQ’s previously announced plans to refinance debt that was initially raised to start mining and processing at its flagship Hellyer base and precious metals operation in Tasmania.

The facility comprises a six-year amortizing loan with a coupon of Libor plus 500 basis points.

This allows NQ and Hellyer to retire a portion of the initial project startup and commissioning debt and replace the expensive 12% debt with funding that has a significantly lower interest rate and is more aligned with the project’s maturity and projected life, according to the release.

The London-listed mining company’s operations are in Australia.

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