Polo Resources Limited GCM RESOURCES PLC - INVESTMENT UPDATE (1132J)
01 December 2018 - 2:37AM
UK Regulatory
TIDMPOL
RNS Number : 1132J
Polo Resources Limited
30 November 2018
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
30 November 2018
Polo Resources Limited
("Polo" or the "Company")
GCM RESOURCES PLC - INVESTMENT UPDATE
Increase in short-term loan facility to GBP2.3 million
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, announces a GBP1.2 million increase in
an existing short-term loan facility of GBP1.1 million provided to
its investee company GCM Resources Plc ("GCM").
Prior to this amendment, the principal terms of the loan were: a
loan facility of up to GBP1.1 million to be repaid within 90 days
upon request and attracting an interest rate of 12% per annum. This
existing loan facility has been fully drawn down. The revised terms
provide for an increase in the loan facility amount by GBP1.2
million, to GBP2.3 million. The GBP1.2 million will be drawn down
by GCM in equal quarterly instalments of GBP300,000. Polo ("the
Lender") will have the right to convert the outstanding loan
balance to new ordinary shares of 10p each at a price of 11p per
ordinary share within 14 days upon request. Any share issue to the
Lender is conditional upon the Lender's interest, together with the
interest of any parties with which it is in concert, remaining
below 30% of GCM's issued capital. All other principal terms of the
loan facility remain unchanged.
As announced on 26 November 2018, in-line with the company's
strategy, GCM has agreed a Memorandum of Understanding ("MOU") with
Power Construction Corporation of China, Ltd ("PowerChina"). The
MOU provides a framework for a future relationship to develop the
Company's proposed coal mine as well as power plants generating up
to 4,000MW at the mine site.
Under the MOU, the key objectives of the parties include a Joint
Development Agreement by 31 December 2018 followed by a joint
submission to the Government of Bangladesh, expected by 28 February
2019. This increased debt funding will be used by GCM in
progressing towards these deadlines, to pursue a strategic partner
for the development of the proposed coal mine as well as for
working capital purposes.
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
Blytheweigh (Public relations)
- Julia Tilley, Jane Lenton, Fergus
Cowan +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
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END
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