IPSA2 Mar 2015 09:58
IPSA Also note below
The balance of the purchase price owed by Rurelec PLC in respect of the turbine sale in 2013, amounting to £3.2m, is expected to be paid in the first half of 2015. We continue to hold further balance of plant, valued at £4 million, which we expect to sell in due course. The Directors of Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, are pleased to announce that, following the successful conclusion of a number of partnership deals, the Company has been able to reduce the size and improve the terms of its short term loan agreements with Radix Investment UK Limited ("the Radix Facility" or "the Facility"). The combined loans are now £550,000 and will be repaid on 31 March 2015 from the proceeds of the contracted sale of a controlling equity stake in Rurelec's Canchayllo hydroelectric plant in Peru. Rurelec is due to receive net proceeds of US $6.5 million from this sale during the course of March. As part of the reduction in the size of the facility, Rurelec has agreed with Radix not to issue the 16.8 million warrants to subscribe for new Ordinary shares in Rurelec at an exercise price of 7.3 pence per share previously announced on 24 December 2014. Rurelec will now be making the previously announced payment to IPSA Group PLC from the proceeds of US $6.5 million.