Namco shareholders approve restructuring

Junior marine diamond miner Namibian Minerals (NMR-T) plans to raise US$10 million in debt financing as part of a restructuring effort.

In early 2001, Namibian was forced into provisional liquidation after its NamSSol seafloor mining system was damaged off the coast of Namibia. The cash crunch exacerbated the company’s financial difficulties and was eventually overcome by the signing of a financing and marketing agreement with the Leviev Group of Israel, now the company’s largest shareholder.

Leviev will provide the loan to replace an earlier, US$3-million bridge financing and repay an existing US$2.6 million debt. None of the funds will be applied to the company’s senior debt, except for interest payments, owing to a moratorium that extends to April 2003.

Namibian is also trying to restructure principal payments owing on convertible debentures that were issued last year. Just under US$7.8 million worth of notes were issued.