NQ Minerals Plc (AQSE: NQMI, OTCQB: NQMLF, OTCQB:NQMIY; Frankfurt: 44D) has advised that it has engaged in a plan to restructure its balance sheet and is well advanced in refinancing negotiations with major financial institutions.
Debt Restructure Plans & Operational Update Reporting Timing:
In December 2020, the Company was successful in restructuring the Hellyer debt with a US$55 million package and the Company is now persuing means to follow on from this to restructure its debts with the intent to position NQ as a leading company in its sector with a balance sheet and financing capabilties equivalent to that of its peer group.
If the Company is successful over the coming months with its plans to restructure its balance sheet and refinance, this will secure the Company’s future and support its ambitious growth plans.
NQ Minerals also confirms that it is on track to provide a quarterly update for its Hellyer operations and cashflows, as it usually does in the first weeks following the end of the quarter. In advance of the quarterly update, the Company advises that Hellyer continued to operate well.
Debt Restructure of NQ at Plc level:
The Company also advises that it is working with NQ’s creditors to support the Company through this proposed balance sheet restructuring and refinancing exercise. The implementation of this strategy will require adherence of a number of investors and, whilst the Company is engaging with all of them, there can be no assurance that there will be enough support to approve the proposed changes. If successful though, the Company’s debt burden and quantum of annual principal and interest payments will be addressed providing the Plc the bandwidth it needs to operate for the future.
Finally, pursuant to recent announcements, there have been significant changes to the Company’s board composition and management structure over the past 6 months with the resignation of three executive directors, and an update will be provided with respect to the Company’s management plans going forward.