LONDON (Alliance News) - Kennedy Ventures PLC Friday said that GBP142,000 has been drawn down on an unsecured loan facility of up to GBP200,000 from Westleigh Investments Holdings Ltd approved by the board in November 2014.
The board approved the interest-free facility on November 13, 2014.
The amount drawn down has been used to help enable African Tantalum (Pty) Ltd, in which Kennedy Ventures has a 75% stake, to enter into the offtake agreement agreed earlier this year. It will also be used to fund other costs of recommencing operations at the Tantalite Valley Mine in Namibia.
Kennedy Ventures focuses on tantalite production in Namibia through its stake in African Tantalum.
The loan is a related party transaction because Giles Clarke and Nick Harrison, both of whom are directors of Kennedy Ventures, hold beneficial interests of 73.28% and 26.72% in Westleigh Investments Holdings.
Kennedy Ventures said its independent directors consulted the company's nominated adviser, which said the terms of the deal are fair and reasonable to shareholders.
Kennedy Ventures shares were flat at 7.25 pence on Friday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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