Afarak Group PLC (LON:AFRK, NASDAQ:AFAGR) cleared the decks with a series of statements, after Wednesday’s market close, detailing a refinancing as well as uploading a financial statement and an auditor’s report to its website.
The company told investors that it has agreed that shares in Afarak Trading Ltd, Turk Maadin Sirketi A.S and Afarak Elektrowerk Weisweiler GmbH will be pledged to secure the performance of Afarak and its group.
The company added that in exchange it will receive working capital support and a revised payment plan.
It comes after market conditions amidst the pandemic meant the company could not deliver ore under an off-take funding agreement, which triggered a debt of US$25.6mln to become due on December 31 2020.
The new schedule sees the debt repaid in instalments with the final payment due by February 2022.
Additionally, in a separate announcement, the company announced it would be making an additional impairment of EUR8.9mln on its South African mining business following a reassessment of impairments made in the financial statement released on February 26.