A dispute over debt arrangements which threatened to see mining company Aurelia Metals placed under administration has been settled.
Glencore had a funding agreement in place with Aurelia, which operates the Hera Mine near Nymagee, but earlier this year attempted to have the company placed under administration claiming it had not met its debt repayment obligations.
Aurelia disputed the claims and moved to have the case heard in the Supreme Court of NSW, however it was announced this week it has entered into a legally binding term sheet for the provision of funding and the court proceedings have been adjourned.
Under the new agreement all existing debt repayments are deferred for two years with interest suspended and Glencore will provide $21.5M in additional funding.
Aurelia’s chief executive officer Rimas Kairaitis said the new agreement will give the company the opportunity to work through issues with the Hera processing plant and help develop a sustainable operation.
“Aurelia welcomes the agreement, as its sets aside the considerable legal and financial uncertainty around the company.
“Aurelia can now proceed with the rectification and optimisation of the Hera project and position the business for growth,” he said.