KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
2 April 2009 
 
               Kenmare Agrees Amendments with Lenders 
 
Kenmare is pleased to announce that ongoing discussions with lenders 
have been successfully concluded. On 2 February 2009, Kenmare 
announced the deferral of a scheduled repayment of senior debt of 
US$11.3 million which was otherwise due on that date. It was also 
noted that discussions were continuing with lenders regarding a 
number of other matters designed to preserve liquidity within the 
Kenmare Group and accommodate the schedule for the achievement of 
full production at Moma in the second half of 2009.  The following 
key waivers and amendments are now agreed: 
 
*         Deferral of the scheduled senior principal instalment of 
  US$11.3 million due on 4 August 2009. This instalment, together 
  with the instalment of US$11.3 million originally due on 2 February 
  2009 and previously deferred, will be repaid commencing 1 February 
  2010 over the remaining life of the Senior Loans. These repayments 
  will be in equal semi-annual instalments and, following financial 
  completion, include additional mandatory prepayments equal to 25% 
  of available cash flow after senior and subordinated debt service; 
 
*         Access to the contingency reserve account ("CRA"), which 
  presently has a balance of US$15 million, and a waiver until 31 
  December 2010 of any obligation for the Company to top up the CRA; 
 
*         Changing the timetable for achieving financial completion, 
  with operational and environmental tests (technical completion) to 
  be concluded by 31 December 2010, marketing tests by 30 June 2011, 
  and financial and legal tests to be concluded by 31 December 2012. 
  Originally, all these tests were to be completed by 30 June 2009. 
  Interest margins on subordinated loans will increase by 3% until 
  technical completion and by 1% until financial completion. This 
  additional margin will be payable only after senior loans have been 
  repaid in full. 
 
Kenmare has agreed to pay fees to the lenders and their guarantors of 
US$1.9 million and 28.2 million ordinary shares in the Company, 
representing approximately 3.5% of the existing issued share capital 
of the Company.  In circumstances which Kenmare considers unlikely, 
an additional contingent fee consisting of US$0.5 million and a 
further 28.2 million shares would be payable.  Whether this 
additional contingent fee will be payable will be determined by 31 
August 2009. 
 
Performance improvement projects designed to allow the facilities at 
Moma to reach full production in the second half of this year are 
progressing. Management remains confident that these projects will 
facilitate the mine in achieving full production in the second half 
of 2009. Production of heavy mineral concentrate, the limiting 
production parameter,  in the first quarter of 2009 was 142,000 
tonnes, an 18% increase on the fourth quarter of 2008. 
 
Charles Carvill, Chairman,  said: "The  Board is  pleased that  these 
waivers and amendments have been agreed with the lenders and that the 
Company is  moving forward  with the  necessary projects  which  will 
enable us  to complete  the  ramp-up to  full production  later  this 
year." 
 
The Company will issue its preliminary results and Annual Report in 
respect of the year ended 31 December 2008 later this month. 
 
For more information: 
 
Kenmare Resources plc 
Michael Carvill, Managing Director 
Tel: +353 1 6710411 
Mob: + 353 87 674 0110 
Tony McCluskey, Financial Director 
Tel: +353 1 6710411 
Mob: + 353 87 674 0346 
 
Murray Consultants 
Elizabeth Headon 
Tel: +353 1 498 0345 
Mob: + 353 87 989 7234 
 
Conduit PR Ltd 
Leesa Peters/Fiona Hyland 
Tel: +44 207 429 6614 
Mob: +44 781 215 9885 
 
 
www.kenmareresources.com 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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