TIDMSKR

RNS Number : 8274J

Sunkar Resources PLC

17 June 2014

17 June 2014

SUNKAR RESOURCES PLC

("Sunkar" or the "Company")

NEW ca. US$2.55 MILLION LOAN FACILITY FROM SAPC

Sunkar (AIM: SKR) announces that it has secured ca. US$2.55 million of additional funding via an unsecured term loan facility provided by Sun Avenue Partners Corp. ("SAPC") (the "New SAPC Loan"), which was entered into today.

Sunkar would like to draw shareholders' attention to the announcement released at 12 p.m. today, relating to the Company reaching agreement on the terms of a recommended, all cash offer to be made by SAPC for the entire issued and to be issued ordinary share capital of Sunkar not already owned by it (the "Offer") (the "Offer Announcement") under the contractual offer route, as set out in the City Code on Takeovers and Mergers.

The Offer will be made on the basis of 1.835 pence for each Sunkar share and values the Company at approximately GBP6.3 million. Further details are set out in the Offer Announcement and full details will be set out in an Offer Document being posted to Sunkar shareholders today by SAPC.

The New SAPC Loan has been provided by SAPC in order to provide sufficient working capital for the Company for the period up to completion of the Offer.

Terms of the New SAPC Loan

The New SAPC Loan is for a maximum total principal amount of ca. US$2.55 million and is unsecured. Repayment is due, in full, not later than 15 October 2014, together with accrued interest, payable at 10 per cent. per annum and the Company has the option to prepay all or part of the New SAPC Loan in one or more instalments, subject to a minimum notice period of five business days.

The New SAPC Loan may be drawn down in principal amounts of not less than US$50,000 and not more than US$500,000 and is subject to standard events of default, including insolvency and change of control, at which time the facility, plus any accrued interest would become due and payable to SAPC.

The New SAPC Loan is subject to English law and the jurisdiction of the English courts.

Related Party Transaction

SAPC is a substantial shareholder and, accordingly, the New SAPC Loan is a related party transaction under the AIM Rules. With regard to the Company's requirement for further funding, the Directors have considered alternative sources of funding, including bank debt and the issue of equity, and have concluded that such alternatives would not be available to the Company, within the required timeframe, on terms more beneficial than those offered by SAPC.

The Directors consider, having consulted with the Company's nominated adviser, Strand Hanson, that the terms of the New SAPC Loan are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

Sunkar Resources plc

   Teck Soon Kong, Chairman                                Tel: +44 20 7397 3730

Serikjan Utegen, CEO

Strand Hanson Limited

   Stuart Faulkner                                                  Tel: +44 20 7409 3494

Andrew Emmott

James Dance

Bankside Consultants

   Simon Rothschild                                              Tel: +44 7703 167065

This information is provided by RNS

The company news service from the London Stock Exchange

END

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