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Regulatory Story
Company Metals Exploration PLC
TIDM MTL
Headline Funding and Banking Update
Released 15:58 06-Mar-2019
Number 0794S15

RNS Number : 0794S
Metals Exploration PLC
06 March 2019
 

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 and Banking Update

Further to the Company's announcement dated 18 February 2019, Metals Exploration announces an update on the conditional amendment to the Runruno Facility Agreement (the "Senior Facility") as amended with its lenders, The Hongkong and Shanghai Banking Corporation Limited and BNP Paribas (the "Senior Lenders"). 

As previously announced, it is a condition precedent of the Amendment Deed dated 18 February 2019 ("Deed") that the Company raises net equity proceeds of US$20million before 31 March 2019, to be immediately utilised to reduce the Senior Facility and provide working capital to the Company.

Following discussions with the Company's major shareholders, MTL Luxembourg SARL and Runruno Holdings Ltd who in aggregate own 65.81% of the issued share capital of the Company, the Company has advised the Senior Lenders that it believes that it is unlikely to be able to satisfy the equity fundraising condition precedent .   

The Company's major shareholders have advised the Company that they are currently not willing to support an equity fundraising by the Company which is a condition precedent to the Deed.  Accordingly, the Company has entered into discussions with the Senior Lenders to find a solution that will allow the Company to continue operations on a sustainable basis. 

In the event that no such agreement is reached the Deed will not become effective and the prevailing senior debt arrangements will remain in place. In that scenario principal payments totalling $35.14 million will fall due at the end of March absent an extension from the lending banks. The Company does not have the resources to make these payments.

A further announcement will be made, as appropriate, in due course.

This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

For further information please visit or contact www.metalsexploration.com

Darren Bowden

Chief Executive Officer

+57 310 230 1620

Michael Langoulant

Interim Chief Financial Officer

+44 (0)7899 249990

 

Nominated Advisor & Broker:

CANACCORD GENUITY LIMITED

Martin Davison, James Asensio

+44 (0)207 523 4689

Public Relations:

TAVISTOCK

Jos Simson, Barnaby Hayward

+44 (0)207 920 3150

 

 

 


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