Metals Exploration PLC Standby Funding (2658J)
29 March 2018 - 5:00PM
UK Regulatory
TIDMMTL
RNS Number : 2658J
Metals Exploration PLC
29 March 2018
29 March 2018
METALS EXPLORATION PLC
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the
"Company"), the natural resources exploration and development
company with assets in the Pacific Rim region.
Standby Funding
The Company has secured a US $2million standby loan facility
(the "Facility") which will be available to be drawn as might be
required for general short term working capital use and to
facilitate the quarterly interest payment to its senior lenders due
29 March 2018. The Facility has been made available by its two
major shareholders, MTL (Luxembourg) Sarl Ltd and Runruno Holdings
Limited, who have agreed to provide the funds on a prorata basis to
their shareholding in the Company and subject to agreeing terms of
contract. The main commercial terms of the Facility are as
follows:
-- Term: from signature to 30 June 2018
-- Interest rate: 20% per annum accruing daily (payable from drawdown)
-- Arrangement fee: 2% payable on signature
The Company's senior lenders (the Hong Kong & Shanghai
Banking Corporation Limited and BNP Paribas) have provided consent
to a waiver request to defer the December 2017 and March 2018
capital payment amounts totalling US $12.96million.
Related party transaction
The Facility is a related party transaction pursuant to Rule 13
of the AIM Rules for Companies and the independent director of the
Company, Ian Holzberger, having consulted with the Company's
nominated adviser, considers that the terms of the Facility are
fair and reasonable insofar as the Company's shareholders are
concerned.
Update on operations
All areas of the operation are performing soundly. The BIOX (R)
circuit ramp-up has shown a significantly improved performance over
the first quarter despite two short term setbacks. The management
team have taken certain measures during the quarter including
changing some of the process reagents and the physical operating
parameters. These changes have resulted in a progressively improved
overall performance and robustness in the circuit. The improving
performance during the quarter to date has increased management's
confidence that the circuit will achieve design in the coming
months.
A full quarterly operational update regarding the Runruno gold
operations will be released during April.
In addition the Company is in discussions with finance providers
to provide a longer term solution to the Company's debt arrangement
more suitable to a company in its early phases of production ramp
up. Further announcements will be made in due course.
For further information please visit or contact
www.metalsexploration.com
Ian R. Holzberger (Executive +63 (0) 9189
Chairman) 795 992
+61 (0) 418 886
165
+63 (0) 918 979
Liam A. Ruddy (Company Secretary) 2931
+44 (0) 7911
719 960
Andrew Rodgers (Chief Financial
Officer) +61 412 429 856
Nominated Adviser and Broker: CANACCORD GENUITY
LIMITED
+44 (0) 207 523
Martin Davison, James Asensio 4689
Public Relations: TAVISTOCK
+44 (0) 207 920
Barnaby Hayward, Jos Simson 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
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