The amendment, among other things:
- Increased the working capital facility by South African Rand (R)16 million ($1.335 million) to R96 million ($8.011 million), with the aggregate Investec facility increasing to R236 million ($19.694 million)
- Extended the availability period of the working capital facility to June 22, 2018
- Extended the maturity date for any amounts drawn against the supplemental credit to June 29, 2018
- Reached an agreement for Buffalo Dundee to immediately repay to Investec the amount of R36.6 million ($3.054 million) currently due to Investec under the existing facility, reducing the aggregate amount outstanding on the facility to R170.3 million ($14.212 million
- Extended the due date for the principal payment amount of R7.5 million (approximately C$0.8 million) due on March 31, 2018 to June 29, 2018
Additionally, Investec agreed not to exercise its acceleration rights with respect to any existing events of default under the facility and will appoint a technical advisor until June 30, 2018 to provide certain monthly reports to Investec.
The company retained Northcott Capital as its financial advisor to conduct a review of its strategic options.
Buffalo is a coal producer in southern Africa and holds a majority interest in two operating mines.