Kemin Resources Regulatory News (KEM)

24 May 2007 07:02

GMA Resources PLC24 May 2007 24 May 2007 AIM: GMA GMA Resources Plc ("GMA" or "the Company") Issue of Convertible Loan Stock GMA Resources Plc announces that it has concluded the raising of £5,700,000through the issue of £5,700,000 nominal of 10 % unsecured convertible loan stock2009 (the "Loan Stock") . Terms of the Issue The conversion rate for the issue will be 15 pence nominal of loan stock perOrdinary Share of 1 pence each in the Company subject to the conditions set outbelow. The option to convert shall be conditional on the passing of special resolutionsat the Company's 2007 AGM (or an extraordinary general meeting convenedimmediately thereafter) (the "Meeting"), authorising the allotment of OrdinaryShares pursuant to the conversion rights for the purposes of sections 80 and 95of the Companies Act 1985 (as amended). Should such resolutions not be approvedthen the rate of interest of the loan stock shall be increased from the date ofthe Company's 2007 AGM to 20% per annum. The right to convert Loan Stock into Ordinary Shares may be exercised by theholders of Loan Stock from the date of the Meeting until 30 June 2009 whereuponany outstanding Loan Stock will be redeemed in the principal amount thereoftogether with all accrued unpaid interest. At any point following 24 May 2008 and if; a) the mid market price of Ordinary Shares in the Company has been above 30pence for 30 consecutive business days; and b) for as long as the mid market price of Ordinary Shares in the Companycontinues to exceed 30 pence, the Company shall have the right to convert, on the basis of 21 days notice tooutstanding loan stock holders, all or part of the outstanding loan stock fromthis issue. This option is also conditional on the resolutions mentioned above. At any point, should over 75% of the initial loan stock have been converted, theCompany shall have the right to convert, on the basis of not less than 40 andnot more than 60 days' notice to outstanding loan stock holders, all theoutstanding loan stock from this issue. This option is also conditional on theresolutions mentioned above. Interest on the loan stock shall be paid on a six-monthly basis in arrears, withthe first payment to be made on 31 December 2007. Use of Proceeds The proceeds of the convertible loan will be used to complete the constructionof the current Tirek / Amesmessa capital projects in southern Algeria, fundfurther exploration expenditures and to provide the Company with additionalworking capital. Douglas Perkins, CEO of GMA, commented: "Construction and development work is still moving along apace at the Amessmessaand Tirek projects, although, as experienced by many mining constructionprojects today, we have had supplier delivery delays and some expenditureincreases as we progress through this phase. Further to the delays disclosed inthe announcement 31 January 2007, the directors subsequently revised theCompany's construction schedule and we are now confident that with this fundingwe will be able to complete the projects in 2007. Concurrently, we are lookingat other exploration targets within Algeria and outside in order to continue toincrease our gold resources and we look forward to reporting on our progresswith this in the near future." Enquiries:GMA Resources PlcDouglas Perkins - Chief Executive OfficerTel: +44 (0) 20 7253 7670Mobile: +1 514 806 6788 Philip Secrett/Fiona OwenGrant Thornton Corporate FinanceTel: +44 (0) 20 7383 5100 Cathy Malins/Annabel LeatherParkgreen CommunicationsTel: +44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange