LONDON (Alliance News) - Metals Exploration PLC said Thursday it has agreed an unsecured standby loan facility with two of its major shareholders, as the company works towards realigning its overall debt.
The natural resources exploration and development company has agreed a USD6.6 million facility for short term working capital use with shareholders MTL (Luxembourg) Sarl Ltd and Runruno Holdings Ltd.
The standby loan has a 20% per annum interest rate which accrues daily from drawdown and a 2% arrangement fee.
The loan provided on the condition that Metals Exploration replaces its three previously announces loan facilities provided by the two lenders together with the current facility into a new mezzanine-style facility.
If the mezzanine loan is not complete by the end of 2018 it will trigger and event of default.
Metals Exploration has commenced working towards the restructuring of its senior debt facility and is "considering wider funding options" while it persists in realigning overall group debt with cash flows from its Runruno gold mine.
Shares in Metals Exploration were untraded on Thursday at 1.62 pence.
Metals Exploration (MTL)