Bradda Head Lithium Regulatory News (BHL)

24 Aug 2007 16:19

Baydonhill PLC24 August 2007 24 August 2007 Baydonhill plc (the "Company") New Loan Facility and Issue of Warrants The Company announces that it has today agreed with Ekwienox FX Limited("Ekwienox") a new £700,000 loan facility. Subject to the Company increasing itsauthorised share capital and the directors being provided with sufficientauthorities to allot ordinary shares of 1 pence each in the Company ("OrdinaryShares") at an annual general meeting or extraordinary general meeting of theCompany on or before 31 October 2007, the loan will be convertible into newOrdinary Shares at 6 pence per Ordinary Share at any time up to 30 April 2010.If such shareholders' resolutions are not passed, the loan together with accruedinterest becomes repayable on 31 December 2008. The loan, or any amountoutstanding under the loan, will bear interest at 4.00 per cent per annum aboveLIBOR until conversion or repayment. In addition, the Company has grantedEkwienox 560,000 warrants to subscribe for new Ordinary Shares at 6.25 pence atany time up to 30 April 2010. The £700,000 facility has been put in place to strengthen the general workingcapital facilities of the Company for at least the next 12 months. Ekwienox currently holds 16,176,507 Ordinary Shares in the capital of theCompany representing 66.34 per cent of the existing ordinary share capital andcould, on a fully diluted basis, hold a maximum of 49,742,459 Ordinary Shares,representing 84.44% per cent of the then issued ordinary share capital. Under the AIM Rules entering into the loan and the issue of warrants asdescribed above ("the Transaction") constitutes a related party transaction. Theindependent Directors, having consulted with John East & Partners Limited("JEP"), the Company's Nominated Adviser, consider the terms of the Transactionto be fair and reasonable insofar as the Company's shareholders are concerned.In advising the independent Directors, JEP has taken into account the commercialjudgement of the Directors. Enquiries:-Wayne Mitchell Tel: +44 (0) 207 594 0515Baydonhill Plc Simon Fox/Bidhi Bhoma Tel: +44 (0) 207 628 2200John East & Partners Limited This information is provided by RNS The company news service from the London Stock Exchange