Nyrstar to Loan Talvivaara as Much as $27.6 Million

Reuters reported that Nyrstar NV (EBR:NYR) has agreed to loan Finland’s Talvivaara (LSE:TALV) up to $27.6 million in exchange for zinc ore.

As quoted in the market news:

The new deal is structured to ensure Nyrstar continues to receive zinc while not increasing its net financial exposure to Talvivaara, Nyrstar said

Hurt by falling nickel prices and repeated production disruptions, Talvivaara sought a court-led reorganisation in November as it ran low on funds. It won court approval in December to renegotiate its debt, allowing it to continue mining and avoid the immediate risk of bankruptcy.

Nyrstar, Talvivaara’s top creditor after paying 232 million euros in advance for zinc deliveries, said it continued to work with the Finnish firm along with others to find a potential investor or investors to help cover its funding gap.

Click here to read the full Reuters report.