Metals Exploration PLC Funding Update (6257G)
May 31 2017 - 1:00AM
UK Regulatory
TIDMMTL
RNS Number : 6257G
Metals Exploration PLC
31 May 2017
31 May 2017
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.
Funding Update
Further to the announcement on 24 May 2017 the Company announces
that it has signed a loan agreement (the "Loan") to borrow US
$2million from its two major shareholders, Runruno Holdings Limited
("RHL") and MTL (Luxembourg) Sarl ("MTL (Lux)"). The shareholders
will provide funding on a prorata basis to their current
shareholding as outlined in Table 1 below:
SHAREHOLDER SHAREHOLDING % HOLDING LOAN CONTRIBUTION
------------- -------------- ---------- ------------------
RHL 393,513,302 28.85% $577,000
------------- -------------- ---------- ------------------
MTL (Lux) 970,532,143 71.15% $1,423,000
------------- -------------- ---------- ------------------
1,364,045,445 $2,000,000
-------------- ------------------
Table 1: shareholding
as of 23 May 2017
The main commercial terms of the loan are summarised below:
-- Principal is for a total of US $2million
-- Interest rate of 20% from the date of drawdown until 31 August 2017
-- Penalty interest rate of 30% from 1 September 2017
-- The repayment date is effectively the date when drawdown
occurs of funds provided from a larger debt facility which is
intended to be provided by a mezzanine debt provider by 30 June
2017
-- The Loan is wholly unsecured and fully subordinate to the terms of the senior debt facility
The proceeds of the Loan will be used to facilitate a payment to
the Group's senior lenders of $2.1 million falling due on 31 May
2017 which is in accordance with the payment schedule agreed with
them
As previously announced to the market the Company is in advanced
discussions with potential providers of a larger working capital
funding facility of which US $2m would be used for the repayment of
the Loan. The Board expects to finalise the terms of this facility
before 30 June and will make a further announcement in due
course.
Related Party Transaction
The Loan Agreement between the Company and MTL (Luxembourg) Sarl
and Runruno Holdings Limited constitutes a related party
transaction under Rule 13 of the AIM Rules as each of them is
either a substantial shareholder or is part of a concert party that
is a substantial shareholder. Messrs Dean, Walker, Wilson and
Simovici, having been appointed to the Board by various of the
major shareholders participating in the Loan, are precluded from
opining thereon. Accordingly, Mr Ian Holzberger being the only
Independent Director, having consulted with Canaccord Genuity
Limited, the Company's nominated adviser, considers that the terms
of the Loan are fair and reasonable insofar as shareholders are
concerned.
For further information please visit or contact
www.metalsexploration.com
Ian R. Holzberger (Executive Chairman) +63 (0) 9189 795 992
+61 (0) 418 886 165
Liam A. Ruddy (Company Secretary) +63 (0) 918 979 2931
+44 (0) 7911 719 960
Stephen J. Kelly (Chief Financial Officer) +63 (0) 9188 795 996
+61 (0) 415 719 695
--------------------------------------------- ---------------------
Nominated Adviser and Broker: CANACCORD GENUITY LIMITED
Martin Davison, Joseph Dorey, James Asensio +44 (0) 207 523 4689
--------------------------------------------- ---------------------
Public Relations: TAVISTOCK
Barnaby Hayward, Jos Simson +44 (0) 207 920 3150
--------------------------------------------- ---------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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