Last checked at 6 Jun 2012 11:32
Hambledon Mining plc ("Hambledon" or the "Company")
6 June 2012
Hambledon Mining plc (AIM: HMB) the gold mining and development company based in Kazakhstan, today announces further information regarding its loan agreement with the EBRD. A copy of this announcement will be available on the Company's website - www.hambledon-mining.com.
EBRD Loan Agreement
Further to the announcement made on 22 February 2012 and the circular to shareholders dated 1 February 2012, Hambledon is pleased to announce that the Company has met all the conditions pertaining to the first tranche of the loan from the European Bank for Reconstruction and Development ("EBRD").
Loan Agreement
Under the terms of the Loan Agreement entered into on 21 February 2012 between two of the Company's subsidiaries, Altai Ken-Bayitu LLP ("AKB") and Sekisovskoye LLP ("Seki"), and EBRD, EBRD conditionally agreed to lend US$15 million in two tranches to AKB and Seki, on a joint and several basis, repayable in quarterly instalments between 10 January 2015 and 10 October 2017. Interest on drawn amounts will be charged at a rate of three months LIBOR plus seven per cent. per annum. The loan ceases to be available for draw down on 21 February 2014.
Under the Loan Agreement, AKB and Seki have each given certain representations, warranties and covenants to EBRD and the Loan Agreement contains certain events of default that could enable EBRD to require repayment prior to the stated maturity date.
AKB and Seki have now satisfied the conditions precedent to the Loan Agreement for the first tranche of US$10 million and these funds have now become available for use by Hambledon. The availability of the second tranche is subject to certain production targets being met.
Ognevka
Hambledon is pleased to announce that, in addition to receiving US$1.2 million from the liquidation proceeds of Ognevka as announced on 20 April 2012, it has received a further payment of U$300,000 making total proceeds. No further payments are expected.
Enquiries:
Hambledon Mining plc: Telephone +44 (0)20 7233 1462Charles Zorab
Fairfax I.S. PLC (Nominated adviser and broker): Telephone +44 (0)20 7598 5368Ewan Leggat/Katy Birkin
Tavistock Communications: Telephone +44 (0)20 7920 3150Ed Portman/Jos Simson
Copyright Business Wire 2012