LONDON (Dow Jones)--IPSA Group PLC (IPSA.LN), a developer, owner and operator of power generation capacity in Southern Africa, Thursday announces that it has arranged short term loan facility of GBP300,000 to allow its generation plant in Newcastle, South Africa, to restart operations in order to supply electricity during the remainder of the month of June under a short term power purchase agreement with Eskom Holdings Limited. MAIN FACTS: -Subject to obtaining the necessary approvals for the loan, the plant is expected to generate electricity for nine days. -The GBP300,000 loan facility was entered into with Sterling Trust Limited, a private investment company based in the United Kingdom, on June 16, at a fixed annualized rate of 12% and is repayable within 90 days of drawdown. -Sterling Trust will be repaid the capital and interest out of the revenues received at the Newcastle plant. -Sterling Trust will also receive warrants to subscribe for 300,000 new ordinary shares in IPSA at a price of 15 pence per share, exercisable within 24 months. -In negotiations with potential South African lenders for a refinancing of up to $20 million of its own inter-company funding of the Newcastle plant. -In conjunction with the Newcastle loan, on June 14, Sterling Trust acquired 6,125,000 Ordinary Shares at 12 pence per share (6.45% of the Company) from the Independent Power Corporation PLC, a company controlled by Peter Earl, the Company's Chief Executive. -In addition, IPC placed a further 2,000,000 Ordinary Shares off-market at 12 pence per share with the adult children of Peter Earl, leaving IPC with no further shareholding in the Company. -However, IPC continues to lend to IPSA and, in addition, has conditionally acquired one of IPSA's four gas turbines subject to obtaining necessary project approvals and financing, as previously announced. -Following this sale of shares by IPC, Peter Earl's remaining interest in the Company is held indirectly through 5,010,000 Ordinary Shares (5.27% of the Company) which are held by his wife, Emma Earl. -Shares at 1102 GMT unchanged at 11.5 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com (END) Dow Jones Newswires June 17, 2010 07:05 ET (11:05 GMT)