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14 Nov 2012 07:00
East West Resources plc
("EWR" or the "Company")
Related Party Transaction
East West Resources plc (AIM: EWR), the physical metals and energy trader, is pleased to announce that its wholly-owned subsidiary, Ambrian Metals Limited ("AML"), has entered into a US$3m unsecured subordinated loan agreement (the "Loan") with Consolidated General Minerals plc ("CGM").
Pursuant to the terms of the Loan, AML is required to pay interest at a rate of 8.5% per annum over LIBOR and the Loan is repayable on 30 June 2013, or such later date as may be agreed by AML and CGM.
CGM currently holds 29.89% of the Company's issued share capital and is categorised as a significant shareholder for the purposes of the AIM Rules for Companies (the "AIM Rules"). Accordingly, the transaction is deemed to be a related party transaction under Rule 13 of the AIM Rules. Having consulted with the Company's Nominated Adviser, Cenkos Securities plc, the independent Directors of EWR consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Nathan Steinberg, Chairman of EWR said:
"This Loan will provide extra capital to AML, alongside existing cash resources, to capture additional revenues in the coming new year and maintain the expansion of the business footprint of our metal trading business."
For further information please contact:
East West Resourcesplc
Roger Clegg, COO +44 (0)20 7634 4785
Cenkos Securities plc
Jon Fitzpatrick +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Notes to Editors:
EWR is primarily active in the physical trading of base metals (primarily copper) and biofuel. It sources and supplies a variety of commodities to end users all over the world. Supported by its offices in London, Hamburg and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities. EWR also holds and manages a number of equity investments. EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.
Further information on East West Resources plc is available on the Company's website: www.ewrplc.com
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