Embattled miner Mirabela Nickel has secured a $US45 million lifeline to continue operations while it works towards a comprehensive refinancing and operational restructuring.
The company announced this morning a consortium of note holders had agreed to the loan to keep Mirabela operating while refinancing discussions continued.
Mirabela has canvassed reducing production at its flagship Santa Rita mine in Brazil to 25mt a year for the next two years as well as the option of placing the mine on care and maintenance as part of an insolvency agreement. The 25mtpa plan envisages a $US100 million equity raising.
However Mirabela said no binding agreements for the restructuring of Mirabela's debt obligations had been concluded nor had any opportunity or arrangement sufficiently progressed to be announced to the market.
It also warned there was no guarantee that a binding agreement would be reached.
Mirabela shares are still suspended after having last traded for 1.6 cents in October when ratings agencies downgraded its debt grading in the wake of the serious operational troubles engulfing its Santa Rita mine.
Already hampered by a weak nickel price that left it struggling to meet its debt obligations, Mirabela was rocked by an attempt by its biggest customer, a Brazilian smelter, to tear up a long-standing nickel concentrate offtake deal.