Centrex (ASX:CXM) has secured strategic agreements with relevant counterparties, strengthening its working capital position, and “providing a robust foundation to complete the stage 1.5 expansion”.
In a corporate update, including regarding its wholly owned subsidiary Agriflex and the Ardmore Rock Phosphate Mine, Centrex says as a result of the increase in logistics requirements arising from the recent increase in production and shipments at Ardmore, the company has accumulated logistics costs of just over $16.914 million to the end of 27 September 2024.
To ensure that shipments were maintained, Centrex’s logistics providers including Aurizon Operations continued to provide service to Centrex. A restructure of some terms of supply were deemed appropriate to enable Centrex to meet debts owed to those suppliers.
Centrex says the nature of the restructure involved certain security arrangement with Aurizon, including general security, guarantees and forbearance, to enable the company to proceed with confidence to a capital raising.
The essential elements include a general security agreement to pay the secured money in accordance with the terms of the logistics agreement; guarantee from the company and its subsidiaries to pay guaranteed money on demand; a tenement mortgage that grants a security interest in relevant tenements; and a deed of forbearance that provides that the creditor will forbear from exercising certain accrued rights providing that Centrex complies with the terms of the deed.
Centrex is looking to secure Australasia’s sustainable agriculture future through the exploration and development of its wholly owned Ardmore Phosphate Project and Oxley Potash Project.
The products from both projects are necessary ingredients for global food production and human nutrition. The Centrex fertiliser projects are located near to established energy and transport infrastructure that are necessary for access to established agricultural markets.
The company is also continuing its copper-gold-base metal exploration projects near Goulburn in the Lachlan Fold Belt in New South Wales.
Write to Adam Orlando at Mining.com.au
Images: Centrex
