Native Mineral Resources (ASX:NMR) has wrapped up an $18 million refinancing arrangement to repay its Collins Street facility and strengthen liquidity for its Queensland gold operations.
The company used $12.3 million of the facility to fully repay Collins Street on 9 October 2026, with the remaining $2.7 million available for debt retirement and general business purposes.
The refinancing removes approximately $11.6 million in scheduled Collins Street repayments due between October 2026 and September 2027.
Yogi Bear Holdings, an entity associated with Managing Director Blake Cannavo, provided the 24-month loan facility maturing in October 2028. The arrangement includes prepaid base interest for the first 12 months, reducing near-term cash servicing requirements.
Chair James Walker says the refinancing strengthens the company’s financial foundations and positions it for growth.
“By removing near-term repayment pressures and improving liquidity, we have created the flexibility needed to focus on operational performance, margin improvement, and disciplined capital allocation,” Walker says.
“It also demonstrates the commitment and belief in this company from our Managing Director Blake Cannavo.”
Managing Director Blake Cannavo says the refinancing provides greater financial flexibility as the company develops its gold production operations.
“The repayment of Collins Street removes a significant existing financing obligation, while the new funding structure, including the prepayment of the first 12 months of base interest, provides greater flexibility in managing our near-term operating cash flow,” Cannavo says.
“Our focus for the December quarter is straightforward — maintain strong plant performance, improve the consistency of feed, and convert that performance into higher and more consistent gold output.”
The loan carries initial interest rates of 11.88% and 23.76% per annum, both variable. NMR will bear all external funding costs including management fees, brokerage and legal expenses totalling approximately $3 million.
The company intends to direct production cash flow towards sustaining operations, improving equipment reliability and implementing cost-reduction initiatives at its Blackjack Processing Facility in north Queensland.
Proposed security over the same assets previously secured to Collins Street remains conditional on ASX waiver approval under listing rule 10.1 or shareholder approval. The loan remains unsecured pending satisfaction of these conditions by 31 March 2027.
Independent directors James Walker and Philip Gardner assessed the arrangement and concluded the terms would be reasonable if parties were dealing at arm’s length under section 210 of the Corporations Act.
Native Mineral Resources is an Australia-focused gold and base metals company, with a portfolio of projects in Queensland.
Write to Paula Fabe at Mining.com.au
Main image: Native Mineral Resources
