MINING GROUP Kenmare Resources will pay its bankers and guarantors $1.9 million and give them a stake in the company as part of a deal allowing it to reschedule loan repayments.

On February 2nd, the company said that it was deferring a $11.3 million loan repayment and would pay it back over the life of the total debt.

Kenmare said this was one of a number of steps needed to maintain liquidity in light of the fact that full production from its titanium mine in Moma, Mozambique, has been delayed to the second half of this year.

Yesterday, the company said that it was deferring payment of a $11.3 million instalment due on August 4th. It will also get access to a $15 million contingency reserve account, and the banks will waive any obligation on the company to top this up until December 31st, 2010.

The company is pushing back various deadlines for the completion of financial, legal and technical tests from mid-2009 to dates in 2010 and 2011. It will face extra interest charges on subordinated loans while it is completing technical and financial tests.

Kenmare said it has “agreed to pay fees to the lenders and their guarantors of $1.9 million and 28.2 million ordinary shares” – 3.5 per cent of the company.

In “unlikely” circumstances to be determined by August 31st, an additional fee of $500,000 and 28.2 million shares may be paid.