Phoenix Global Resources PLC Additional Funding (0813E)
09 March 2022 - 6:00PM
UK Regulatory
TIDMPGR
RNS Number : 0813E
Phoenix Global Resources PLC
09 March 2022
9 March 2022
Phoenix Global Resources plc
("Phoenix" or the "Company")
Additional Funding
Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream
oil and gas company, announces an update on its funding
arrangements.
As disclosed in the Company's announcement of 29 December 2021
("Announcement"), Mercuria stated its intention to provide
financial support to the Company in order that the Company could
continue to operate and service the Company's liabilities as they
fall due for the 12-month period from 14 September 2021, the date
of the release of the interim results, and agreed to meet the
Company's cash needs for this period and not demand repayment of
the Mercuria loans (principal and interest), whilst discussions
between the parties to restructure the loans continue.
The parties continue to discuss the restructure of the existing
debt and whilst these discussions continue , Mercuria has agreed to
further increase the bridging facility, which carries interest at
US$ LIBOR plus 4% and is not convertible, by US$30.0 million to
US$97.5 million.
The principal terms remain consistent with the terms of the
existing facility and as announced on 29 December 2021, the
repayment date for the bridging facility's principal and interest
was recently extended to 31 December 2022 and the interest payment
grace period for the convertible facilities agreement extended to
30 September 2022 and the first repayment date to 31 December 2022.
The loans continue to be unsecured . The increased facility will be
used to fund the Company's planned work programmes.
Related Party Transaction
Mercuria Group is a substantial shareholder of the Company and a
related party under the AIM Rules for Companies. The increase of
the Bridging Facility to US$97.5 million, if aggregated with other
transactions carried out between the Company and Mercuria Group, as
set out in the Announcement, constitutes a related party
transaction (the "Transaction") under the AIM Rules. The directors
of the Company, except for Daniel Jaeggi (being Mercuria's
designated director under the Relationship Agreement between
Phoenix and certain Mercuria Group companies), having consulted
with the Company's nominated adviser, Shore Capital & Corporate
Limited, consider that the terms of the Transaction are fair and
reasonable insofar as the Company's shareholders are concerned.
For further information, please contact:
Phoenix Global Resources plc Nigel Duxbury T: +44 20 3912 2800
Shore Capital Toby Gibbs T: +44 20 7408 4090
Nominated Adviser and Joint David Coaten
Broker
Panmure Gordon John Prior T: +44 20 7886 2500
Joint Broker Atholl Tweedie
About Phoenix
Phoenix Global Resources is an independent oil and gas
exploration and production company focused on Argentina and listed
on both the London Stock Exchange (AIM: PGR) and the Buenos Aires
Stock Exchange (BCBA: PGR) and offers its investors an opportunity
to invest directly into Argentina's Vaca Muerta shale formation and
other unconventional resources. The Company has over 0.9 million
licenced working interest acres in Argentina (of which
approximately 0.7 million are operated), 18.8 million boe of
working interest 2P reserves and average working interest
production of 4,549 boepd in 2020. Phoenix has signi cant exposure
to the unconventional opportunity in Argentina through its
approximately 0.6 million working interest acres with Vaca Muerta
and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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