Metals Exploration Secures USD2 Million Loan From Shareholders

LONDON (Alliance News) - Metals Exploration PLC said Thursday that all areas of operation are performing soundly and that it has secured a USD2 million standby loan facility from two major shareholders.

The natural resources exploration company with assets in the Pacific Rim region added that it is in talks with finance providers to provide a longer term solution to the company's debt arrangements.

The standby loan will be available to be drawn for general short term working capital use and to facilitate the quarterly interest payment to the company's senior lenders. The facility has been made available by shareholders, MTL (Luxembourg) Sarl Ltd and Runruno Holdings Ltd,

The loan bears interest rate of 20% per annum accruing daily and arrangement fee of 2%. The company's senior lenders, the Hong Kong & Shanghai Banking Corp Ltd and BNP Paribas, have provided consent to a waiver request to defer the December 2017 and March 2018 capital payment totalling USD13 million.

Shares in Metals Exploration were up 6.9% at 3.47 pence.