News Column

Asia Resource Minerals Subsidiary Launches Bond Offer In Refinancing

July 25, 2014

Samuel Agini

LONDON (Alliance News) - Asia Resource Minerals PLC Friday said that its Berau Capital Resources II Pte Ltd subsidiary has launched a bond offer as it looks to refinance its existing debt.

The financial instruments on offer come in the shape of USD450.0 million of guaranteed senior secured notes due 2019. If successful, the proceeds of the offer will be used to repay and redeem Berau's current USD450.0 million outstanding 12.5% guaranteed senior secured notes due 2015.

"I am delighted to be able to report to shareholders that our refinancing plans are on track. Optimising Berau's capital structure and reducing our interest costs continues to be a key goal for us in view of the continued weakness in the coal market," Asia Resource Minerals Chief Executive Amir Sambodo said in a statement.

Meanwhile, Asia Resource Minerals reiterated that it is continuing to engage with authorities in Indonesia over its production quota for 2014.

"While the most recent Life of Mine Plan provided for a production tonnage in the current year of 25.75 [million tonnes], the clear indication from the Indonesian authorities is that they continue to favour a cap on production tonnage," the company said in its statement.

"The most recently indicated proposed cap was 22.35mt and we are continuing to negotiate a potential increase to that. We are optimistic that we will be granted a cap that falls within a range between the most recently indicated cap and our most recent life of mine plan. We will update the market in due course when those discussions have concluded," the company added.

Asia Resource Minerals shares were Friday quoted up 0.1% at 71.31 pence.

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Source: Alliance News

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