Denver — After securing higher prices for platinum and palladium production at its namesake operation in southwestern Montana,
The company has received commitments from TD Securities (USA), a division of Canada’s TD Securities, which would be used to repay US$125 million in borrowings from an existing credit facility.
The proceeds will take the form of a US$135-million 7-year term loan, a US$65-million 5-year term loan, and US$50 million in a 5-year revolving line of credit.
“This financing was made possible as a result of the recently announced long-term contracts for metal production that raised our minimum floor prices through 2010,” says Stillwater Chairman William Nettles.
The floors were lifted 40% to US$490 per oz. on palladium produced through to 2003. From 2004 to 2010, 70% of the palladium produced will have an average price of US$400 per oz.
As for platinum, the company set a minimum price of US$425 per oz. on 60% of the metal, along with a ceiling of US$850 per oz. on 12% of production from 2004 to 2010.
The financing will be secured by the company’s assets, and all funds drawn down should carry an interest rate of 200-325 basis points above the London Interbank Borrowing Rate.
Meanwhile, Stillwater is advancing construction of the US$270-million East Boulder project, a stand-alone operation 13 miles west of the Stillwater mine. The company is also carrying out a 3-year operating plan at the Stillwater mine aimed at improving throughput to 2,800 tons per day.
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