18 Jul 2017 07:00
BELLZONE MINING PLC
("Bellzone" or "the Company")
Amendment to Loan Repayment Date
Bellzone Mining plc (AIM: BZM) announces that CS International (S) Pte Ltd (previously China Sonangol International (S) Pte Limited) ("China Sonangol") has agreed to amend the Loan Agreement dated 18 August 2014 (as previously amended by written agreement on 28 January 2015, 4 March 2015, 17 December 2015 and 8 December 2016) as follows:
(1) The Repayment Date extended from 31 March 2018 to 31 December 2018; and
(2) The non-default Interest rate of the aggregate of five (5) percent and LIBOR shall continue to accrue in the period of amended Repayment Date from 31 March 2018 to 31 December 2018.
Loan Facilities with China Sonangol and Hudson Global
The amended Loan Agreement is with respect to the loan financing provided by China Sonangol to the Company in 2014 and 2015, totalling a principal amount of US$10.2 million, which was fully drawn down in 2015.
Hudson Global Group Limited ("Hudson") provided two further loans in the principal amount of US$6.5 million and US$4.0 million in 2016 and 2017 respectively. The first Hudson loan was fully drawn down on 29 March 2017, and the first draw-down of the second Hudson loan was completed on 6 June 2017. Both Hudson loans remain to be repaid by 31 March 2018. The Company intends to initiate discussion with Hudson at the appropriate time whether any amendments to either and/or both loan agreements will be in the best interest of both parties.
Related Party Transaction
China Sonangol is an associated company of Hudson under the AIM Rules for Companies. As Hudson is a substantial shareholder in the Company, the amendment is a related party transaction under the AIM Rules for Companies.
The Independent Directors of Bellzone, being Michael Farrow, Simon Brickles and Antony Gardner-Hillman consider, having consulted with its nominated adviser, WH Ireland Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Michael Farrow, Chairman, commented: "Once again, China Sonangol has demonstrated its strong support for Bellzone and its desire for the Company to succeed into the long term. The Company is immensely grateful for this timely reaffirmation of China Sonangol's longstanding commitment."
Enquiries:
Bellzone Mining plc Simon Edwards | +44 (0) 7767 492 712 |
WH Ireland Limited Nominated Adviser and Broker James Joyce / James Bavister | +44 (0) 20 7220 1666 |
Bell Pottinger Financial Public and Investor Relations Victoria Geoghegan / Liz Morley
| +44 (0) 20 3772 2500 |