# Capital Limited completes key intended debt financing facilities for Sukari contracts

- Link: https://www.directorstalkinterviews.com/capital-limited-completes-key-intended-debt-financing-facilities-for-sukari-contracts/412952122
- Published: 2021-01-08T07:08:01+00:00
- Author: Giles

**Capital Limited** ([LON:CAPD](https://www.directorstalkinterviews.com/company/capital-drilling-ltd/capd.l)),
a leading mining services company focused on the African markets has provided an
update on the progress of financing and capex expenditure to support the waste mining
and extended drilling services contracts at the Sukari Gold Mine, Egypt.

Equity proceeds from the recent share placing were received in late December 2020,
facilitating further payments on major capital equipment items required for the 
contracts. Payments have now been significantly progressed for all major long lead
equipment required for the contracts, including 17 CAT 785 dump trucks, seven blast
hole drill rigs, three excavators, and all major ancillary support equipment including
dozers, graders and water trucks. Additional trucks have recently arrived in Egypt,
supplementing the initial truck fleet that arrived during Q4 2020.

We are also pleased to advise that we have made substantial progress on several 
of the debt facilities contemplated in the capital raising prospectus (dated 4 December
2020) including:

·     Executing the US$2.6 million vendor finance agreement with Epiroc with full
draw down against the purchase of three new blast hole rigs; 

·     Fully drawing down on the remaining tranches of the US$10 million Macquarie
facility following finalisation of the Sukari contracts and security registration
in Egypt; and

·     The committed and available vendor finance facility with Sandvik for US$8.5
million is expected to be utilised over the course of the first quarter against 
the purchase of four new blast hole rigs.

Discussions are advancing with lenders on additional facilities designed to provide
the Group with balance sheet flexibility for further growth, with the capital requirements
for the Sukari contracts now met.

Capital will provide further updates as the project continues to advance.

> **Commenting on the Sukari financing progress, Jamie Boyton, Capital Limited Executive
> Chairman, said:**
> ‘We are very pleased to confirm the completion of key intended debt financing 
> facilities for the Sukari contracts which have enabled the payments for all major
> equipment purchases to be finalised. Together with the proceeds from the recent
> successful equity raise, the crystallisation of these debt facilities positions
> us strongly for this contract. It is also pleasing to note that site activity 
> is also progressing well with the continued expansion of our extensive on-site
> facilities, further asset arrivals and the recruitment of key personnel to prepare
> for the commencement of preliminary mining activity in late Q1 as planned.’

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