Gemfields PLC USD 65 million debt financing facilities (0666D)
04 July 2016 - 4:00PM
UK Regulatory
TIDMGEM
RNS Number : 0666D
Gemfields PLC
04 July 2016
Gemfields plc
("Gemfields" or "the Company")
USD 65 million debt financing facilities
04 July 2016
Gemfields plc (AIM: GEM) is pleased to announce the finalisation
of four debt financing facilities (the "Facilities"). Following
evaluation of a number of proposals received by the Company, the
board believes that these Facilities represent the best option for
the Company in terms of cost and associated flexibility. The
Facilities are as follows:
1) USD 45 million facility for the Ruby operations, Montepuez
Ruby Mining Lda ("MRM"), 75% owned by Gemfields plc, which consist
of:
a. USD 15 million unsecured overdraft facility was entered into
by MRM, with Barclays Bank Mozambique S.A. ("Barclays S.A.") in
April 2016. The facility has an interest rate of three months USD
LIBOR plus 4% per annum. The Company issued a corporate guarantee
for the facility.
b. USD 15 million overdraft facility was entered into by MRM
with Banco Comercial E De Investimentos, S.A. ("BCI") in June 2016.
This facility is valid for 18 months and is renewable. The facility
has an interest rate of three months USD LIBOR plus 3.75% per
annum. The facility is secured by a blank promissory note
undertaken by MRM and a corporate guarantee by Gemfields Mauritius
Ltd, a 100% subsidiary of the Company.
c. USD 15 million finance leasing facility was entered into by
MRM with BCI in June 2016. This is a renewable facility with a
drawdown period of 18 months and the amounts drawn down are
repayable over a maximum period of 48 months. The facility has an
interest rate of three months USD LIBOR plus 3.75% per annum. This
facility is secured by a blank promissory note undertaken by MRM
and a corporate guarantee by Gemfields Mauritius Ltd, a 100%
subsidiary of the Company.
2) USD 20 million financing facility with Macquarie Bank Limited
("Macquarie") agreed in May 2016. This is a fixed term facility and
has an interest rate of three months USD LIBOR plus 4.50% per
annum. The loan is repayable in regular instalments over a 12-month
period from the date of first drawdown of the loan. The security
for this loan comprises a floating charge over the jewellery and
cut and polished gemstones of Fabergé (UK) Limited and the
Company.
The loan with Macquarie replaces the USD 25 million debt
facility entered into in April 2015 and is used for general
corporate purposes. The proceeds of the Facilities with Barclays
S.A. and BCI will enable MRM to finance its capital expenditure
requirements for the Montepuez ruby deposit in Mozambique and
provide additional working capital.
Janet Boyce, CFO of Gemfields, commented:
"We are pleased to have agreed these financing facilities after
having considered a number of alternatives as well as other offers
from various banks. The Facilities, together with Kagem's existing
revolving credit facility of USD 30 million with Barclays Bank in
Zambia, provides Gemfields with the necessary funding to sustain
its growth and expansion plans to increase annual production to
approximately 20 million carats of rough rubies in MRM and more
than 40 million carats of rough emeralds in Kagem within the next 3
years. Lastly they also assist in smoothing the Company's cash
flows given the intermittent nature of revenue in-flows from the
coloured gemstone auctions."
ENQUIRIES:
Gemfields janet.boyce@gemfields.co.uk
+44 (0)20 7518
Janet Boyce, CFO 7283
Grant Thornton UK LLP
Nominated Adviser
Philip Secrett/Richard Tonthat/Jamie +44 (0)20 7383
Barklem 5100
J.P. Morgan Cazenove
Joint Broker
+44 (0)20 7742
Jamie Riddell 4000
BMO Capital Markets Limited
Joint Broker
Jeff Couch/Neil Haycock/Tom +44 (0)20 7236
Rider/Jenny Wyllie 1010
Macquarie Capital (Europe)
Limited
Joint Broker
Raj Khatri/Ken Fleming/Nick +44 (0)20 3037
Stamp/Fergus Marcroft 2000
Tavistock
+44 (0)20 7920
Jos Simson/Emily Fenton 3150
Notes to Editors:
Gemfields plc is the world's leading supplier of responsibly
sourced coloured gemstones and is quoted on the AIM division of the
London Stock Exchange (ticker: GEM) where it is a constituent of
the AIM50 index.
Gemfields is the operator and 75% owner of both the Kagem
emerald mine in Zambia (believed to be the world's single largest
producing emerald mine) and the Montepuez ruby mine in Mozambique
(one of the most significant recently discovered ruby deposits in
the world). In addition Gemfields also holds a 50% interest in the
Kariba amethyst mine in Zambia, as well as controlling interests in
various other gemstone mining and prospecting licenses in Zambia,
Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.
Gemfields' outright ownership of Fabergé an iconic and
prestigious brand of exceptional heritage enables Gemfields to
optimise positioning, perception and consumer awareness of coloured
gemstones, advancing the wider group's "mine and market"
vision.
Gemfields has developed a proprietary grading system and a
pioneering auction and trading platform to provide a consistent
supply of quality coloured gemstones to the global downstream
markets. This is a key component of the Company's business model
which the Directors believe has played an important role in the
appropriate distribution and associated resurgence of the global
coloured gemstone sector.
www.gemfields.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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