Last checked at 12 Apr 2013 10:46
Watermark Global Plc
(“Watermark” or the “Company”)
12 April 2013
Update
Watermark signed a loan agreement with Trinity Asset Management (Pty) Ltd (“TAM”) as part of the capital raising process when listing MRI in June 2012. Under the loan agreement, TAM agreed to place approximately 105 million MRI shares by 12 September 2012 in order to repay the loan of approximately £1.4 million. Watermark also had the option of taking ownership of any of the MRI shares not placed by 12 September 2012. Interest accrues on the loan at 2% above prime rate in South Africa. This agreement was subsequently extended to 12 April 2013.
Because the commencement of commercial anthracite briquetting operations has been delayed, as explained in the announcement of 30 January 2013, the board has agreed to extend the date for the placement of the balance of the shares and repayment of the loan for a further 3 months until 12 July 2013. The Board of Watermark expects commercial start-up to be delayed somewhat beyond April 2013 although the team at MRI continues to work very hard to achieve as early a commencement of commercial operations as possible. We will keep shareholders informed of developments. Importantly, we remain confident that commercial objectives for the anthracite briquetting business will be achieved.
As mentioned in the announcement of 30 January 2013, TAM and the Company have contributed to a loan to MRI, which is repayable in December 2013. Of the loan of R2million made to MRI by Watermark, approximately R1 million was funded from the interest owed to the Company by TAM. Furthermore, interest owed to Watermark by TAM under the latest rollover, charged at 2% over S African Prime Rate of 8.5% will be payable at commencement rather than completion of the period.
The Watermark Board will keep the position regarding the remaining MRI shares under review and a further update will be provided as appropriate.
Enquiries
Charles Zorab Tel: + 44(0) 20 7233 1462 + 44(0) 20 7233 1462
czorab@watermarkglobalplc.com
Nominated Adviser: Cenkos Securities
Ian Soanes/Ivonne Cantu Tel: +44(0)20 7397 8900
Copyright Business Wire 2013