Richland Resources Ltd Extension of Loan Facility and Strategy Update (4524R)
28 February 2019 - 11:00PM
UK Regulatory
TIDMRLD
RNS Number : 4524R
Richland Resources Ltd
28 February 2019
28 February 2019
Richland Resources Ltd
("Richland" or the "Company")
Further Extension of Secured Convertible Loan Facility
and update on Strategy for Capricorn Sapphire
Richland (AIM: RLD), the Australian sapphire producer and
gemstones developer, announces a further extension of its
GBP400,000 Secured Convertible Loan Facility (the "Convertible Loan
Facility") and an update on its strategy in relation to its wholly
owned subsidiary, Capricorn Sapphire Pty Ltd ("Capricorn
Sapphire"), owner of the Capricorn sapphire mine in Queensland,
Australia.
Further Extension of the Convertible Loan Facility
The Company has agreed and executed a third addendum to its
pre-existing Convertible Loan Facility (originally announced on 25
June 2018), to further extend the facility's maturity date from 28
February 2019 to 31 March 2019, for no additional consideration,
with all other terms and conditions remaining unaltered. The
Company is currently in discussions with the provider of the
facility to potentially increase the quantum of the facility to
provide additional working capital and a further announcement(s)
will be made as and when appropriate. As announced on 28 September
2018, the first addendum to the Convertible Loan Facility involved
an increase in the principal amount from GBP300,000 to GBP400,000,
on the same commercial terms as the original Convertible Loan
Facility, whilst the second addendum announced on 31 December 2018
involved an initial extension of its term to 28 February 2019.
Strategic Update regarding Capricorn Sapphire
On 28 September 2018, the Company announced that it was engaged
in discussions with potential strategic investors to procure
sufficient funding to enable the recommencement of production at
the Capricorn sapphire mine or, alternatively, was seeking to
conclude ongoing negotiations with different parties in relation to
the potential sale of all or a part of Capricorn Sapphire. On 31
December 2018, the Company announced and today reconfirms that it
is continuing to pursue this stated strategy and remains in
advanced discussions with one party, in particular, with regards to
the potential sale of the entire Capricorn Sapphire project.
However, there can be no guarantee that the Company will be able to
either secure the requisite funding to be able to re-commence
operations or conclude discussions with regard to the potential
disposal of Capricorn Sapphire.
For further information, please contact:
Anthony Brooke Edward Nealon Mike Allardice
Chief Executive Officer Chairman Group Company secretary
+66 81 854 1755 +61 409 969 955 +852 91 864 854
Nominated Adviser Broker
Strand Hanson Limited Shore Capital Stockbrokers
James Harris Ltd
Matthew Chandler Jerry Keen (corporate
James Dance broking)
+44 (0) 20 7409 3494 Toby Gibbs / Mark Percy
(corporate finance)
+44 (0) 20 7408 4090
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Note to Editors:
Further information is available on the Company's website:
www.richlandresourcesltd.com. Neither the contents of the Company's
website nor the contents of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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