MMG Limited announced that its 62.5%-owned Peruvian subsidiary Minera Las Bambas S.A. has signed a Revolving Facility Agreement with Industrial and Commercial Bank of China (Asia) Limited and Bank of Communications Co., Ltd. (acting through its Offshore Banking Unit).

The facility provides up to US$0.35 billion in revolving credit for a tenor of three years, earmarked for general funding requirements at Las Bambas.

Under Rule 13.18 of the Hong Kong Listing Rules, MMG disclosed that the agreement contains change-of-control covenants. The lenders may accelerate repayment with at least 20 days’ notice if either of the following occurs: 1. China Minmetals Corporation ceases to hold or control more than 50% of MMG’s voting rights or issued share capital. 2. MMG ceases to hold or control more than 50% of the voting rights, board appointments, operating or financial policy direction, or issued share capital of Minera Las Bambas S.A.

The disclosure highlights the linkage between MMG’s capital structure and its ultimate controlling shareholder, China Minmetals Corporation, as well as MMG’s majority ownership of Las Bambas.