Independent Resources PLC Shareholder loan and related party transaction (5148M)
14 October 2016 - 5:00PM
UK Regulatory
TIDMIRG
RNS Number : 5148M
Independent Resources PLC
14 October 2016
14.10.16
Independent Resources Group PLC
("IRG" or "the Company")
Shareholder loan and related party transaction
Independent Resources plc (AIM:IRG) is pleased to announce that
it has entered into a loan agreement ("Loan Agreement") for an
unsecured loan of up to GBP340,000 ("Loan") with Brandon Hill
Capital Limited ("Brandon Hill"), an existing shareholder and debt
holder in the Company.
Under the Loan Agreement, Brandon Hill has agreed to advance the
Loan to the Company, as and when requested by the Company at its
sole discretion, save that the Company may not draw down more than
GBP100,000 during any 30 day period of the Loan Agreement's
duration. Combined with the loan agreement entered into on 28
September 2016, if the Loan were to be drawn down in full, IRG
would have total indebtedness to Brandon Hill of GBP500,000,
excluding accrued interest.
The Loan carries an interest coupon of 15% per annum and each
draw down of the Loan, has a term of 1 year from the date of draw
down ("Term"), save that IRG has the discretion to repay the
outstanding principal and accrued interest, partially, or in full,
at any time prior to the end of the Term, without incurring any
penalty for such early repayment. Brandon Hill has not charged an
arrangement fee on the Loan and no interest will be payable on any
undrawn principal of the Loan.
The Loan will be used to meet IRG's near term funding
requirements and provide additional working capital and liquidity
to the Company.
Related Party Transaction
Brandon Hill Capital Limited hold approximately 10.7% of IRG's
issued ordinary share capital and as such is considered to be a
related party of the Company as defined by the AIM rules. The Loan
therefore constitutes a related party transaction pursuant to AIM
rule 13.
The Directors of IRG, having consulted with the Company's
nominated adviser, Panmure Gordon (UK) Limited, considers that the
terms of the Loan are fair and reasonable insofar as its
shareholders are concerned.
Greg Coleman, Chief Executive Officer of IRG commented:
"We would like to thank our major shareholder Brandon Hill
Capital for their continued support. The structure of the Loan is
highly favourable to IRG given the Company has the flexibility to
drawdown funds only as and when they are required. As previously
announced, IRG expects to receive accrued and ongoing revenues from
its flagship East Ghazalat project in Egypt. By entering into this
Loan Agreement the Company is on a more stable financial footing
until those revenues are realised.
As announced previously, we look forward to updating the market
in due course on the progress of the Company's asset
portfolio".
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, visit www.ir-plc.com or contact:
Independent Resources
Greg Coleman plc 020 3367 1134
Adam James Panmure Gordon (UK) Limited 020 7886 2500
(Nominated Adviser &
Joint Broker)
Oliver Stansfield Brandon Hill Capital 020 3463 5000
Jonathan Evans (Joint Broker)
Simon Hudson Tavistock Communications 020 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
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