ZincOx Resources PLC Loan Notes Extension and Sale of USA Assets (8041S)
July 13 2015 - 1:00AM
UK Regulatory
TIDMZOX
RNS Number : 8041S
ZincOx Resources PLC
13 July 2015
13th July 2015
ZincOx Resources plc
("ZincOx" or the "Company")
Loan Notes Extension and Sale of USA Assets
ZincOx (AIM:ZOX), developer and operator of one of the largest
Electric Arc Furnace Dust ("EAFD") recycling facilities in the
world, announces that it has extended the redemption date for the
loan notes ("Loan Notes" or "Notes")) by 12 months to 20 August
2016 and sold assets in the USA.
Extension of Loan Notes
The issuance of Loan Notes was announced on 13 August 2013. The
Notes amount to GBP4.2 million, bear annual interest at 10% and are
secured over land in Turkey.
As explained in the Company's latest Annual Report, due to the
planned development of new recycling facilities in Turkey by other
entities, it was clear to the Company that there was little
likelihood of ZincOx being able to secure long term EAFD supply
agreements and so develop a plant in Turkey. Unfortunately, due to
the uncertainty created around the Turkish election in June, it was
not possible to conclude a sale and furthermore the inconclusive
election result and continuing political uncertainty is likely to
dampen interest until there is more political stability which may
not be until after a new election is held towards the end of this
year.
In order to have sufficient time to sell the land at a fair
price and repay the Loan Notes, the holders of the Notes
("Noteholders") have agreed to extend the redemption date of the
Notes by 12 months and allow their early repayment without penalty.
In exchange for these changes, the warrants over 9,450,000 Ordinary
Shares in the Company, previously issued to Noteholders will be
repriced from 40p to 25p and their duration extended by one year
(the "Transaction") but in all other regards the terms of the
warrants are unchanged. No new warrants will be issued.
The Noteholders include two directors of the Company, Andrew
Woollett and Gautam Dalal ("Lending Directors"), who hold
GBP975,000 and GBP500,000 of the Notes respectively. Due to the
involvement of the Lending Directors, the Transaction constitutes a
related party transaction for the purposes of Rule 13 of the AIM
Rules for Companies. The Independent Directors (the directors of
the Company excluding the Lending Directors), having consulted with
Peel Hunt, the Company's Nominated Adviser, consider that the terms
of the transaction are fair and reasonable insofar as the
shareholders of the Company are concerned.
Big River Zinc Assets, USA
ZincOx is also pleased to announce the sale of the land, plant
and equipment (the "Assets") owned by its wholly owned subsidiary,
Big River Zinc Corporation, for the sum of $750,000. Completion of
the sale is due to take place on or before 31 July 2015.
The Company had retained the plant for the piloting of
consecutive metal leaching ("CML") and/or the upgrading of zinc
concentrate ("HZO"). However, as stated in its latest Annual
Report, the CML piloting can be undertaken elsewhere at a lower
cost and the treatment of HZO in the USA would be uneconomic.
Consequently, the Company decided to dispose of the Assets.
Rod Beddows, ZincOx's Non-Executive Chairman and Independent
Director, said: "The extension to the Loan Notes means we have not
had to rush into a sale and this should enable us to get a fair
price for this land. Our withdrawal from Turkey and the USA will
reduce overheads and enable us to concentrate fully on the Far East
where our next plant will be developed."
For more information please visit www.zincox.com or contact:
Tel: +44 (0) 127 645
ZincOx Resources plc 0100
Andrew Woollett, Chief Executive Officer
Peel Hunt LLP (Nominated Adviser and Joint Tel: +44 (0) 207 418
Broker) 8900
Daniel Harris
Euan Brown
finnCap Limited (Joint Broker) Tel: +44 (0) 207 220
Joanna Weaving 0500
Christopher Raggett
Tavistock Communications (Financial PR) Tel: +44 (0) 207 920
Simon Hudson 3150
Nuala Gallagher
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSFMFMSFISEIW
Zincox (LSE:ZOX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Zincox (LSE:ZOX)
Historical Stock Chart
From Jul 2023 to Jul 2024