Tiger Resources pounces on much-needed $23m loan
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Embattled Tiger Resources has locked in a loan of $US18.2 million ($23 million) to help get its Congo copper project back on track.
Perth-based Tiger (ASX:TGS) — which has been suspended from ASX trade since February — secured an $US18.2 million loan with parties linked to two of its lenders, Taurus Funds Management and International Finance Corporation.
The money will help fund the business and develop a plan for its Kipoi copper project in the Congo.
Tiger must conduct an equity raising of at least $US45 million by June 30 next year to help pay down the loan.
“Tiger is undertaking a comprehensive restructuring and recapitalisation process and is currently progressing all commercial opportunities in the interests of its shareholders and other stakeholders,” the company said.
Tiger remains in voluntary suspension from trading on the ASX while it addresses its financing requirements.
The company is undertaking a strategic review and restructuring of operational, technical and financial aspects of the business.
Kipoi produced 4204 tonnes of copper cathode in the June quarter, up 4 per cent on the previous quarter, at a cost of $US2.14 a pound.
Copper cathode sold during the period was 4431 tonnes at an average realised price of $US5807 per tonne.
At end of last quarter, Tiger had $4.6 million in the bank.