According to Keaton, 170 million rand of the term loan will be used to complete the construction of their Vanggatfontein coal washing plant and ancillary facilities while 130 million rand will be applied to their purchase of the Austrailian based Xceed Resources.
The working capital facility of 50 million rand will be for general purposes.
“We are pleased to have concluded this important financing at a time when Keaton is in a strong growth phase. We will conclude the Xceed acquisition on an all-cash basis and, importantly, the replacement of the Vanggatfontein project finance debt with a term loan provides us not only with greater financial flexibility within the Keaton group but also reduces our cost of capital,” said Mandi Glad, chief executive officer of the coal mining and development company [DATA KEH:Keaton Energy Holdings Ltd.].
“In addition, the availability of a further 50 million rand facility, coupled with our growing cash reserves, positions Keaton to take advantage of any opportunities that may arise in the market.”