Brazilian mining and metals holding company Paranapanema's sale of its Taboca Mineração subsidiary to Peruvian miner Minsur and issuance of bonds will nearly eliminate the group's non-operational debt, Paranapanema investor relations director Doris Wilhelm told BNamericas.
According to Wilhelm, debt peaked at 1.3bn reais (US$570mn) in May. The company still owes roughly 500mn reais but in August Paranapanema obtained 478mn reais by issuing 11-year bonds.
"We are going to eliminate half of the debentures [bonds] and the other half we are going to pay our creditors in the form of shares," said Wilhelm. "We're almost zeroing in on our non-operational debt. This is a landmark in the finalization of Paranapanema's financial restructuring process."
Located in the Brazilian state of Amazonas, Taboca was sold in September for approximately US$472mn to Serra da Madeira Mining Company, the 50%-controlled Brazilian subsidiary of Peruvian tin miner Minsur.
Taboca's income represents 5% of Paranapanema's gross annual revenues. Its main asset is the Pitinga mine in Amazonas some 250km from the city of Manaus, which produces tin, niobium, iron and tantalum.
Minsur, Peru's biggest tin producer, said in a statement in September the purchase is in line with its growth plans and will provide important access to tin reserves, as well as international exposure.
No comments:
Post a Comment