Proactive Investors - I3 Energy PLC (TSX:ITE) told investors it has settled a 22 million pound loan note and has established a new C$100 million loan facility.
The new loan, provided by Trafigura, gives the company greater financial flexibility and enhanced credit capacity to further execute its ongoing business plan, it said in a statement.
It can be repaid either in cash or by a set-off against deliveries of crude oil, under a three-year contract.
"i3 Energy is very pleased to have refinanced its outstanding debt with an expanded debt facility,” chief executive Majid Shafiq said in a statement.
“In volatile capital market conditions, we have managed to improve our access to liquidity with a flexible and scalable debt facility and established a relationship with a very sophisticated oil and gas investor.
“It is a very positive validation of our business model and asset portfolio, and we look forward to a mutually beneficial relationship with Trafigura as both companies continue to expand their operations in Canada".
The loan comprises a C$75 million advance and a C$25 million accordion facility.
i3 noted that the balance of the remaining funds provided by the facility will be used for corporate purposes and to assist in the acceleration of the company’s organic growth opportunities – from within its portfolio of development drilling projects.
Iain Singer, head of Trifigura Canada, meanwhile, commented: “Trafigura's business in Canada has grown materially in the last few years.
“One of our objectives is to continue to think locally while leveraging off our global platform.”
He added: “We are pleased to execute this commercial agreement with i3 Energy and look forward to working together to grow our business relationship over the coming years."