Metals Exploration PLC Short Term Funding Secured (6526J)
June 30 2017 - 1:00AM
UK Regulatory
TIDMMTL
RNS Number : 6526J
Metals Exploration PLC
30 June 2017
30 June 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.
Short Term Funding Secured
The Company has previously announced that is in discussions with
a mezzanine debt provider for the provision of a working capital
facility. It was announced on 24 May 2017 that the Company expected
to conclude the discussions by 30 June 2017. Negotiations have been
progressing and it is the Company's current expectation that such a
facility will be in place during the next 60 days.
On 30 June 2017 the Group is required to make a payment of
almost US $10.0 million to its senior lenders and documentation on
the mezzanine debt facility will not be completed in time to
facilitate this payment.
To enable the Group to meet the amounts due on 30 June, the
Company has, in the absence of alternative near term funding
options, approached its two major shareholders, MTL (Luxembourg)
Sarl Ltd and Runruno Holdings Limited, who have agreed to provide a
US $10.0 million short term loan to the Company (the "Loan"). The
shareholders will provide funding on a prorata basis to their
shareholding in the Company. The Loan's key terms are in line with
the previous $2m shareholder loan provided in May 2017 and will
accrue an interest rate of 20% per annum for a term of 60 days.
Should the Loan not be repaid within 60 days, the interest rate
will increase to 30% per annum until repayment.
The Company will continue to update the market as the
discussions in relation to the above working capital facility
progress. Further funding will be required by the end of August to
repay the short-term loans and for working capital purposes.
Related party transaction
The independent director of the Company, Ian Holzberger, having
consulted with the Company's nominated adviser, considers that the
terms of the Loan are fair and reasonable insofar as its
shareholders are concerned.
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
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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