Metals Exploration PLC Runruno Gold Project Update (2659I)
26 August 2016 - 8:38PM
UK Regulatory
TIDMMTL
RNS Number : 2659I
Metals Exploration PLC
26 August 2016
26 August 2016
METALS EXPLORATION PLC
(the "Company")
Runruno Gold Project Update
Metals Exploration plc (AIM: MTL) today reports that, as a
consequence of continued delays in realising revenue from its
Runruno project and the debt restructuring discussions continuing
longer than expected, the Company now requires additional funding
for general working capital purposes without delay.
Management is currently in discussions with its major
shareholders to raise additional working capital, but no agreement
has been reached at this time. A further announcement will be made
in the near future.
Since restarting the SAG mill after repairs to the feed end
trunnion bearing in mid-July, "testing and debugging" operations as
part of ore commissioning and plant ramp-up have proceeded
satisfactorily with gold pours occurring on a weekly basis. The
BIOX(R) circuit has commenced its ramp-up schedule with high levels
of biological activity being achieved. It is expected to begin
feeding product into the CIL circuit in around two weeks. The
Company is currently working through the conditions of its
Financial or Technical Assistance Agreement and the procedures set
by the regulatory authorities to achieve first gold shipment and
consequently first sale. Revenue from the first sale of gold is
expected late in September.
The Company also continues its discussions with the Runruno
project's lenders to restructure the Runruno US $75,000,000 debt
facility and $8,000,000 cost overrun facility having failed to make
the required US$15,000,000 capital payment due on 30 June, 2016 as
advised in the Company's announcement to the market on 30 June,
2016. Currently the Company is required to pay the interest
accruing on the outstanding US$15,000,000 capital payment on a
monthly basis.
For further information please visit or contact
www.metalsexploration.com
Ian R. Holzberger +63 (0) 9189 795 992
(Chairman) +61 (0) 418 886 165
Liam A. Ruddy +61 (0) 498 648 615
(Company Secretary) +44 (0) 7911 719 960
Nominated Adviser: STOCKDALE SECURITIES Ltd
Robert Finlay, Edward Thomas +44 (0) 207
601 6100
Public Relations: TAVISTOCK
Edward Portman; Jos Simson +44 (0) 207
920 3150
Broker: SP ANGEL CORPORATE FINANCE LLP
Ewan Leggat +44 (0) 203 470 0470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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