Aurelia Metals secures A$150m financing, releases A$46m cash

Aurelia Metals (ASX: AMI) has secured a A$150 million senior secured financing package. The deal replaces the miner's previous rehabilitation bond and loan facilities and releases about A$46 million in restricted cash.

The package includes a A$110 million rehab bonding facility and a A$40 million revolving credit facility. Lenders are Citi, Credeq, and HSBC. The rehab bonds are split into three-year and five-year tranches. The RCF runs for three years. The package carries no mandatory hedging requirements and is backed by first-ranking senior security over most of Aurelia's assets. Interest rates were not disclosed.

The rehab bonding facility covers environmental and mine closure obligations. The RCF can be drawn for general corporate purposes and working capital.

CFO Martin Cummings said the refinancing followed a competitive process. He said the facilities give Aurelia a flexible structure and strengthen its balance sheet. The release of restricted cash improves working capital. The longer-dated rehab bonds push out near-term obligations. The absence of hedging gives management more flexibility on sales timing.

The mix of lenders includes a specialist mining finance provider and two global banks.

For Aurelia, the financing reduces balance sheet risk. The next test will be production performance. A strong quarterly report would validate the improved liquidity. A sustained drop in commodity prices could offset the benefit of the stronger balance sheet.

Cummings said the facilities provide long-term support for rehabilitation obligations and position the business for its next phase of growth.