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Regulatory Story
Company Metals Exploration PLC
TIDM MTL
Headline Working Capital Funding
Released 07:00 22-Nov-2018
Number 1344I07

RNS Number : 1344I
Metals Exploration PLC
22 November 2018
 

22 Nov 2018

 

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.

 

 

Working Capital Funding

 

The Company announces that it has agreed, with its two major shareholders, MTL (Luxembourg) Sarl Limited and Runruno Holdings Limited (together the "Lenders"), an unsecured standby loan facility of up to US $6.6million (the "Facility").  The Facility is available to be drawn by the Company as might be required for general short term working capital use. The main commercial terms of the Facility are in line with previously provided facilities from the Lenders and as follows:

 

·    Interest rate: 20% per annum accruing daily from drawdown;

·    Arrangement fee: 2% payable in cash on signature;

·    The Facility is provided on the condition that the Company replaces the three previously announced (December 2015, March 2018 and July 2018) loan facilities provided by the Lenders (and accrued/capitalised interest) together with this current Facility into a new  Mezzanine style single facility (the "Mezzanine Facility");

·    If the Mezzanine Facility is not completed by 31 December 2018, this will trigger an event of default under the Facility.

·    The Company is currently working towards putting this Facility in place.

 

As previously announced to the market on 5 November 2018, the Company has also commenced working towards restructuring its senior debt facility and is considering wider funding options, as the Board continue to work towards realigning the overall Group debt with the Runruno gold mine cash flows. It is expected more information will be made available before 31 December outlining the strategy being pursued.

 

Related party transaction

The Facility is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies and the independent director of the Company, Ian Holzberger, having consulted with the Company's nominated adviser Canaccord Genuity Limited, considers that the terms of the Facility are fair and reasonable insofar as the Company's 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) 7904 200857 







 Andrew Rodgers (Chief Financial Officer)

+61 412 429 856



                               

 












Nominated Adviser and Broker:                   CANACCORD GENUITY LIMITED



Martin Davison, James Asensio

+44 (0) 207 523 4689















Public Relations:                                              

TAVISTOCK



Barnaby Hayward, Jos Simson

+44 (0) 207 920 3150






 


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