Ascent Resources PLC £7 million loan facility (8423M)
12 May 2015 - 4:02PM
UK Regulatory
TIDMAST
RNS Number : 8423M
Ascent Resources PLC
12 May 2015
Ascent Resources plc
("Ascent" or "the Company")
GBP7 million loan facility
The Board of Ascent is pleased to announce that it has secured a
GBP7 million loan facility (the "Loan") for general corporate
purposes with Henderson Global Investors Limited ("Henderson").
The Loan can be drawn at any time from signing to 30 June 2016
at the discretion of Henderson. The Loan accrues interest at the
rate of 7.5% per annum on the amount drawn and this is added to the
amount of the Loan. The Loan is subject to a drawdown fee of 1.75%
per tranche which is deducted from the funds advanced. The Loan is
also subject to a repayment fee of 1.25% on any amounts repaid by
the Company. The balance outstanding is repayable on demand at any
time.
The Loan provides the Company with funds to continue the
development stage of the Petišovci Tight Gas Project (the
"Project"). When combined with suitable project finance, which the
board is hopeful can be finalised shortly, the Company will have at
its disposal all the funds required to take the Project to first
gas.
Related Party Transaction
Henderson and its associates are substantial shareholders in
Ascent, holding 10.7% of the Company's issued share capital and as
such Henderson is considered to be a related party of the Company
pursuant to Rule 13 of the AIM Rules for Companies.
The issue of the Loan is therefore a related party transaction
pursuant to AIM Rule 13. The independent directors of the Company
(being Nigel Moore, Cameron Davis, Len Reece and Colin Hutchinson),
having consulted with the Company's nominated adviser, finnCap Ltd,
consider that the terms of the Loan are fair and reasonable insofar
as the Company's shareholders are concerned.
Leonard Reece, CEO of Ascent Resources PLC said:
"I am very pleased that we have succeeded in securing this
facility, which provides the Company with access to significant new
funds. This underpins the Company's ability to move the Petišovci
project forward with a view to early gas production."
Enquiries:
Ascent Resources plc.
Len Reece / Colin Hutchinson
Tel: +44 (0)20 7251 4905
finnCap (Nominated Adviser and Broker)
Christopher Raggett / Kate Bannatyne
Tel: +44 (0) 20 7220 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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