Saved by the bell

The revised investment deal offered to OZ Minerals by China Minmetals is being seen as something of a 'get out of gaol free' card, after it will pay down all of the company's multi-billion dollar debts and leave the beleaguered miner with up to $600 million in cash reserves.

The revised investment deal offered to OZ Minerals by China Minmetals is being seen as something of a ‘get out of gaol free’ card, after it will pay down all of the company’s multi-billion dollar debts and leave the beleaguered miner with up to $600 million in cash reserves.

The deal will also allow OZ to maintain ownership of its most valuable assets, including the Prominent Hill and Martabe mines.

“The deal is a complete solution in regards to our refinancing requirements,” OZ CEO Andrew Michelmore told journalists yesterday.

“This is the best possible outcome for everybody.”

Despite the immediate prospect of a cash positive position, OZ is still planning to leave the Martabe gold mine on the market as insurance for its future.

“That is a very important backstop,” he said.

“You always have to have something in the background.

“You never know what comes around the corner.”

Michelmore warns that OZ will not be pushed into a low price for the gold mine because they have been in a vulnerable position.

“If we do not get the appropriate price we will not be selling it,” he said.

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