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KGHM Polska Miedź SAKGHM copper enters into USD 500 mln loan agreement with banks to finance Sierra Gorda mine
Listed copper group KGHM has entered into a loan agreement with a consortium of banks for the financing of Sierra Gorda mine. The USD 500 million revolving syndicated loan agreement is expected to ensure financial stability and enable further development of the mine in Chile, KGHM said in a press release.
"The financial support will allow us to continue the development of the Sierra Gorda mine, which is key to achieving our long-term goals for our overseas assets," said KGHM's deputy CEO for foreign assets Iga Dorota Lis, quoted in the press release.
"This is a step that will bring tangible benefits to both the mine and the entire KGHM Group," she added.
As stated in the release, the leaders in the transaction are Banco Santander and The Bank of Nova Scotia (together with Scotiabank Chile), their involvement has also been confirmed by: ING, HSBC, Sumitomo Mitsui, Intesa Sanpaolo, Mega Bank and ICBC Group banks.
The financing provided will refinance current commitments, providing additional funds for further investment activities and operational stabilisation of the mine in Chile.
The Sierra Gorda mine, a joint venture between KGHM International LTD. and South32, located in Chile's Antofagasta region, produces copper and molybdenum.
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