Welcome to the new morningstar.co.uk! Learn more about the changes and how our new features help your investing success.

Altyn Agrees Bank Loan And In Talks For More Sekisovskoye Mine Funding

LONDON (Alliance News) - Altyn PLC on Tuesday said it has agreed a loan and is in talks to secure ...

Alliance News 19 March, 2019 | 3:37PM
Email Form

LONDON (Alliance News) - Altyn PLC on Tuesday said it has agreed a loan and is in talks to secure more funding in order to increase production at its Sekisovskoye gold mine in Kazakhstan.

Shares in Altyn were up 36% at 0.75 pence on Tuesday afternoon.

In its half year report, released in August, Altyn said its long term plan is to increase production from its mine by targeting ore bodies in a more defined way, pushing up the grade and also increasing the volume of ore that is mined.

It said it had been "working hard" to secure the necessary funding but had been unable to continue with its previous providers. Since then, Altyn has continued to seek new investors but has not succeeded.

"After conducting detailed and lengthy due diligence and exploring a number of possibilities either, the timing, terms of the repayments or other factors resulted in the funds ultimately not being taken up," said Altyn.

However, Kazakh Bank JSC has agreed to provide a KZT350 million unsecured loan to the miner, equivalent to around USD950,000. Altyn is also in talks with the bank for a "larger amount of funding", the exact value of which was not disclosed.

Moreover, major Altyn shreholder African Resources Ltd has also committed to provide another KZT400 million unsecured loan to Altyn to be used to buy underground mining machinery.

"The company is pleased with African Resources Ltd's continued support for the company with the aim of boosting production further," said Altyn.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Altyn PLC 0.58 GBX 0.88 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites