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31 May 2017 07:00
31 May 2017
METALS EXPLORATION PLC
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the "Company"), the natural resources exploration and development company with assets in the Pacific Rim region.
Funding Update
Further to the announcement on 24 May 2017 the Company announces that it has signed a loan agreement (the "Loan") to borrow US $2million from its two major shareholders, Runruno Holdings Limited ("RHL") and MTL (Luxembourg) Sarl ("MTL (Lux)"). The shareholders will provide funding on a prorata basis to their current shareholding as outlined in Table 1 below:
SHAREHOLDER | SHAREHOLDING | % HOLDING | LOAN CONTRIBUTION |
RHL | 393,513,302 | 28.85% | $577,000 |
MTL (Lux) | 970,532,143 | 71.15% | $1,423,000 |
1,364,045,445 | $2,000,000 | ||
Table 1: shareholding as of 23 May 2017 | |||
The main commercial terms of the loan are summarised below:
· Principal is for a total of US $2million
· Interest rate of 20% from the date of drawdown until 31 August 2017
· Penalty interest rate of 30% from 1 September 2017
· The repayment date is effectively the date when drawdown occurs of funds provided from a larger debt facility which is intended to be provided by a mezzanine debt provider by 30 June 2017
· The Loan is wholly unsecured and fully subordinate to the terms of the senior debt facility
The proceeds of the Loan will be used to facilitate a payment to the Group's senior lenders of $2.1 million falling due on 31 May 2017 which is in accordance with the payment schedule agreed with them
As previously announced to the market the Company is in advanced discussions with potential providers of a larger working capital funding facility of which US $2m would be used for the repayment of the Loan. The Board expects to finalise the terms of this facility before 30 June and will make a further announcement in due course.
Related Party Transaction
The Loan Agreement between the Company and MTL (Luxembourg) Sarl and Runruno Holdings Limited constitutes a related party transaction under Rule 13 of the AIM Rules as each of them is either a substantial shareholder or is part of a concert party that is a substantial shareholder. Messrs Dean, Walker, Wilson and Simovici, having been appointed to the Board by various of the major shareholders participating in the Loan, are precluded from opining thereon. Accordingly, Mr Ian Holzberger being the only Independent Director, having consulted with Canaccord Genuity Limited, the Company's nominated adviser, considers that the terms of the Loan are fair and reasonable insofar as shareholders are concerned.
For further information please visit or contact www.metalsexploration.com
Ian R. Holzberger (Executive Chairman) | +63 (0) 9189 795 992 |
+61 (0) 418 886 165 | |
Liam A. Ruddy (Company Secretary) | +63 (0) 918 979 2931 |
+44 (0) 7911 719 960 | |
Stephen J. Kelly (Chief Financial Officer) | +63 (0) 9188 795 996 |
+61 (0) 415 719 695 | |
Nominated Adviser and Broker: CANACCORD GENUITY LIMITED | |
Martin Davison, Joseph Dorey, James Asensio | +44 (0) 207 523 4689 |
Public Relations: TAVISTOCK | |
Barnaby Hayward, Jos Simson | +44 (0) 207 920 3150 |
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