KMR Kenmare Resources Plc

 
TIDMKMR 
 
 
   Kenmare Resources plc ("Kenmare" or "the Company") 
 
   7 December 2015 
 
 
 
 
   Announcement of plans for an investment by State General Reserve Fund 
(SGRF), a further capital raising, and balance sheet restructuring 
 
   The Board of Kenmare today announces that it proposes to pursue a 
capital raising and debt restructuring to materially deleverage the 
balance sheet of the Company to provide a sustainable platform for 
future operations, with an enhanced working capital position. Subject to 
agreement with lenders, the plan is expected to result in gross 
outstanding debt being substantially reduced and the satisfaction of the 
requirement of lenders in relation to a material deleveraging 
transaction. 
 
   The capital raising is expected to be conducted by means of a firm 
placing and open offer. It is intended that there will be an opportunity 
for existing shareholders to subscribe in the open offer on the same 
terms as under the firm placing, failing which shares not subscribed for 
will, it is anticipated, be issued to lenders as a partial equitisation 
of the outstanding debt. 
 
   SGRF, a sovereign wealth fund of the Sultanate of Oman, has approved in 
principle an investment of US$100 million in the firm placing via one of 
its subsidiaries, subject to and conditional upon, inter alia, agreement 
of a subscription agreement, agreement of arrangements with the Group's 
project lenders on the Group's capital structure, procurement of 
commitments from other shareholders in respect of an additional minimum 
US$75 million capital, necessary Kenmare shareholder approvals, and 
finalisation of a prospectus. 
 
   Following the withdrawal of the Iluka approach separately announced 
today, and the related lifting of the restrictions on the Company which 
applied during the offer period, the Company is seeking to engage in 
negotiations with the lenders and key shareholders in relation to the 
terms of the capital raising. The process of concluding these 
negotiations and finalising related documentation is expected to take a 
number of weeks. The Company remains in discussions with lenders in 
respect of the required waivers to the April 2015 Amendment in the 
context of planned further disbursements of the Super Senior facility. 
 
   Moma is a world-class asset that encompasses a large, long life ore 
body. Total invested capital exceeds US$1.2 billion, with the mine 
producing more than 7% of global TiO2 feedstock supply - being the 
largest merchant producer of ilmenite globally. During 2015, Kenmare has 
made material reductions to the sustainable costs of production in 
response to the decline in market prices, while heavy mineral 
concentrate and ilmenite achieved production records in Q3 2015. 
Subject to agreeing a sustainable capital structure with lenders, the 
Board believes Kenmare's business will be well supported during the 
current low mineral sands pricing environment and will be well 
positioned for all stakeholders to benefit from the expected recovery. 
 
   There remain a number of material matters that need to be agreed to 
enable Kenmare to deliver the planned capital raising and there can be 
no certainty at this time that they will be achieved. Kenmare welcomes 
the indicated support from SGRF and appreciates the support of key 
shareholders.  Initial discussions between the lenders and Kenmare have 
taken place and a term sheet has been shared with the lenders. Subject 
to the  support and co-operation of lenders and key shareholders, and 
with the indicated support from SGRF, the Board of Kenmare looks forward 
to progressing the capital raising. Furthermore, the Board remains 
confident of the medium and long term fundamentals of the mineral sands 
industry. 
 
   Further announcements will be made in due course. For further 
information, please contact: 
 
   Kenmare Resources plc 
 
   Michael Carvill, Managing Director 
 
   Tel: +353 1 671 0411 
 
 
   Mob: + 353 87 674 0110 
 
 
   Tony McCluskey, Financial Director 
 
   Tel: +353 1 671 0411 
 
 
   Mob: + 353 87 674 0346 
 
   Jeremy Dibb, Corporate Development and Investor Relations Manager 
 
   Tel: +353 1 671 0411 
 
   Mob: + 353 87 943 0367 
 
   Murray Consultants 
 
 
   Joe Heron 
 
 
   Tel: +353 1 498 0300 
 
 
   Mob: +353 87 690 9735 
 
 
   Buchanan 
 
   Bobby Morse / Anna Michniewicz 
 
   Tel: +44 207 466 5000 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Kenmare Resources via Globenewswire 
 
   HUG#1971648 
 
 
  http://www.kenmareresources.com/ 
 

(END) Dow Jones Newswires

December 07, 2015 02:00 ET (07:00 GMT)

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