TIDMASO
RNS Number : 0576L
Avesoro Resources Inc.
14 July 2017
14 July 2017
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
US$35 MILLION LOAN FACILITY
Avesoro Resources Inc. ("Avesoro" or the "Company"), the TSX and
AIM listed West African gold producer, is pleased to announce that
it has entered into a US$35 million loan facility (the "Facility")
with its majority shareholder, Avesoro Jersey Limited ("Avesoro
Jersey").
Under the terms of the agreement, the Company may draw down up
to US$35 million in multiple tranches at the Company's discretion
before 31 December 2020, with funds available for general working
capital purposes. The Facility is unsecured and ranks subordinated
to the Company's existing facilities. Interest will be charged on
drawn amounts at a fixed rate of 3.75 per cent. per annum. The
Facility is due to repaid in full no later than 31 December 2022
and has no early repayment penalty.
To date, the Company has drawn down US$16.6 million of the
Facility to meet liabilities arising on the termination of legacy
procurement contracts, make advanced payments to suppliers to
secure lower unit cost pricing and to accelerate the acquisition of
capital items that will increase process plant throughput.
Related party transaction
Avesoro Jersey is the Company's majority shareholder (73.5% of
the Company's issued share capital). As a result, entering into the
loan facility constitutes a related party transaction under the AIM
Rules. The independent directors of the Company, consisting of Mr
David Netherway, Mr Jean-Guy Martin and Mr Loudon Owen consider,
having consulted with the Company's Nominated Adviser, that the
terms of the transaction are fair and reasonable insofar as its
shareholders are concerned.
Loudon Owen, the Company's Lead Director, commented:
"The turnaround in operations since the changes in management
and control of the Company in July 2016 has been very impressive.
This additional funding facility from our major shareholder
provides the Company with additional flexibility to further reduce
costs, maximise margins and accelerate the elimination of legacy
issues. This additional support from our majority shareholder
clearly underlines their commitment to the long-term success of
Avesoro Resources."
Contact Information
Avesoro Resources Inc. Camarco
Geoff Eyre / Nick Smith Gordon Poole / Nick Hennis
Tel: +44(0) 20 7010 7690 Tel: +44(0) 20 3757 4980
-------------------------- -----------------------------
Numis Securities Limited Hannam & Partners (Advisory)
(Nominated Adviser and LLP
Joint Broker) (Joint Broker)
John Prior / James Black Rupert Fane / Andrew
/ Paul Gillam Chubb / Ingo Hofmaier
Tel: +44(0) 20 7260 1000 Tel: +44(0) 20 7907 8500
-------------------------- -----------------------------
About Avesoro Resources Inc.
The Company's assets include the New Liberty Gold Mine in
Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine")
which has an estimated proven and probable mineral reserve of 8.5
Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated
measured and indicated mineral resource of 9,796 Kt with 1,143,000
ounces of gold grading 3.63 g/t and an estimated inferred mineral
resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A
Definitive Feasibility Study ("DFS") has been completed, the first
gold pour has taken place and commercial production has been
declared. The foregoing mineral reserve and mineral resource
estimates and additional information in connection therewith are
set out in the Company's technical report dated March 25, 2015 and
entitled "New Liberty Gold Project, Bea Mountain Mining Licence
Southern Block, Liberia, West Africa, Definitive Project Plan.
The New Liberty Gold Mine is located within the Southern Block
of the 100% owned Bea Mountain mining licence. This licence covers
478 km(2) and has a 25 year, renewable, mineral development
agreement. The Bea Mountain mining license also hosts additional
gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which
are the focus of exploration programs during 2016. Ndablama has an
indicated mineral resource of 386,000 ounces of gold grading 1.6
g/t and inferred mineral resource of 515,000 ounces of gold grading
1.7 g/t and Weaju has an inferred mineral resource of 178,000
ounces of gold grading 2.1 g/t. The Yambesei (473 km(2) ), Archaen
West (56 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2) )
licences will also be subject to preliminary reconnaissance
geological work. The foregoing mineral resource estimates and
additional information in connection therewith are set out in the
Company's technical report dated December 1, 2014 and entitled
"Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence,
Northern Block, Technical Report on Mineral Resources" ("Ndablama
and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person is Mark J. Pryor, who holds a BSc
(Hons) in Geology & Mineralogy from Aberdeen University, United
Kingdom and is a Fellow of the Geological Society of London, a
Fellow of the Society of Economic Geologists and a registered
Professional Natural Scientist (Pr.Sci.Nat) of the South African
Council for Natural Scientific Professions. Mark Pryor is an
independent technical consultant with over 25 years of extensive
global experience in exploration, mining and mine development and
is a "Qualified Person" as defined in National Instrument 43 -101
"Standards of Disclosure for Mineral Projects" of the Canadian
Securities Administrators and has reviewed and approves this press
release.
Forward Looking Statements
Certain information contained in this Announcement constitutes
forward looking information. This information may relate to future
events or the Company's future performance. All information other
than information of historical fact is forward looking information.
The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should",
"believe", "predict" and "potential" and similar expressions are
intended to identify forward looking information. Specific
statements that constitute forward looking information include
statements regarding the timing and completion of legal
documentation required to amend the loan facilities and to document
the guarantees. This forward looking information involves known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward looking information. No assurance can
be given that this information will prove to be correct and such
forward looking information included in this Announcement should
not be unduly relied upon. This information speaks only as of the
date of this Announcement.
Actual results could differ materially from those anticipated in
the forward looking information contained in this news release as a
result of the risk factors, including: the risk that the waiver and
standstill agreement will terminate; the risk that legal
documentation may not be completed as anticipated; risks normally
incidental to exploration and development of mineral properties;
the inability to obtain required waivers and amendments from the
Company's creditors in respect of its debt repayment obligations
and consequential risks of default thereon; risks related to
operating in West Africa; health risks associated with the mining
workforce in West Africa; risks related to the Company's title to
its mineral properties; adverse changes in commodity prices; risks
related to current global financial conditions; the inability of
the Company to obtain, maintain, renew and/or extend required
licences, permits, authorizations and/or approvals from the
appropriate regulatory authorities and other risks relating to the
legal and regulatory frameworks in Liberia, including adverse
changes in applicable laws; competitive conditions in the mineral
exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; risks related to environmental regulations;
uncertainties in the interpretation of results from drilling; risks
related to the legal systems in Liberia; risks related to the tax
residency of the Company; changes in exchange and interest rates;
risks related to the activities of artisanal miners; actions of
third parties that the Company is reliant upon; lack of
availability at a reasonable cost or at all, of plants, equipment
or labour, including required equipment, explosives and other
necessary material not being delivered in the expected time frame,
or at all; the inability to attract and retain key management and
personnel; political risks; and future unforeseen liabilities and
other factors.
The forward looking information included in this Announcement is
expressly qualified by this cautionary statement and is made as of
the date of this Announcement. The Company does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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