IN BRIEF: Metals Exploration Proposes Conditional Debt Restructuring

Metals Exploration PLC - natural resources exploration and development company - Proposes conditional debt restructuring. Following extensive discussions over the last 12 months, the company announces that it has entered into term sheets with its lenders Runruno Holdings Ltd, MTL (Guernsey) Ltd and MTL (Luxembourg) Sarl to conditionally restructure both the senior facility and various pre-existing mezzanine debt facilities. As at August 31, the total amount owing to the respective lenders was USD72 million for the senior facility and USD65 million under the mezzanine facilities. "Although I'm disappointed that the final outcome is not in line with the general terms discussed with the lenders prior to the purchase of the senior debt, it is pleasing to have concluded this drawn-out debt restructuring process which provides the company with more flexible and commercially attractive debt terms that allows for the shares to re-commence trading on AIM in the near term," says Chief Executive Darren Bowden. "The end result places the company in a financial position where its debt burden does not jeopardise its future solvency. Both the company and the lenders will share the upside and downside risks of gold price and operational performance fluctuations."

Current stock price: 0.73 pence

Year-to-date change: down 38%

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

Metals Exploration