Irish mining company Kenmare Resources has announced that it proposes to pursue a capital raising and debt restructuring.
The plan is expected to result in gross outstanding debt being substantially reduced and the satisfaction of the requirement of lenders in relation to a material deleveraging transaction.
SGRF, a sovereign wealth fund of the Sultanate of Oman, has approved in principle an investment of $100m in the firm.
Following the withdrawal of the Iluka approach separately announced today, and the related lifting of the restrictions on the company which applied during the offer period, the company is seeking to engage in negotiations with the lenders and key shareholders in relation to the terms of the capital raising.
Iluka first proposed a combination of Iluka and Kenmare in June, 2014 and since then Kenmare has provided updates in relation to the proposed combination and its terms.
At all times Iluka has retained the right to change the terms of its proposal. As announced by Iluka, it has not proved possible for Iluka to satisfy certain of its pre-conditions and therefore has confirmed that it does not currently intend to make an offer for Kenmare.
There remain a number of material matters that need to be agreed to enable Kenmare to deliver the planned capital raising and there can be no certainty at this time that they will be achieved.