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Alita Resources' lenders extend standstill again over A$40m loan default

THE lenders of lithium miner Alita Resources have further extended the standstill period for a secured A$40 million loan (S$37.4 million) until 7pm on Aug 29.

This is to allow more time for discussions with various parties on refinancing options and recapitalisation proposals, the company said in a bourse filing on Monday morning.

The consortium of lenders, led by Tribeca Investment Partners, had earlier entered a standstill agreement with Alita Resources until Aug 20, in respect of certain events of default under the loan. It was then extended to Aug 23.

The asserted events of default relate to non-acceptance by lenders of an updated life of mine plan, and an alleged failure to comply with physical parameters of the preciously approved life-of-mine plan. A life-of-mine plan is a formally approved long-term plan for a mine.

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Another asserted event of default was Alita Resources "suffering a material adverse effect" to its business and financial performance as a result of lithium spot price deterioration and weakened market demand for spodumene concentrate.

Shares of Alita Resources have been suspended since Aug 14.