31 Jul 2013 07:00
Strategic Natural Resources Plc
("SNR" or the "Company")
Update on short term loan and strategic investor
Update on short term loan
Further to the announcement made on 17 July 2013, The board of SNR (the "Board") confirms that Land Consultants Limited ("LCL") has agreed to the extension of the short term bridging loan to the Company (the "LCL Facility") (which expired on 30 July 2013) to 30 September 2013, whilst the Board continues negotiations with a long term strategic investor. The original principal amount drawn down under the LCL Facility, plus interest accrued to 30 July 2013 and a facility fee, has been aggregated and the total outstanding balance of £6,846,747 will accrue interest on the same terms as previously. All other terms of the LCL facility, save for the repayment date, remain the same as announced by the Company on 02 May 2013.
Update on strategic investor
The Board has progressed discussions with a number of potential strategic investors and yesterday agreed exclusivity with one such investor, a well known international coal trader. The Board will seek to finalise terms with the investor in the near term and a further announcement will be made as and when appropriate.
It continues to be the Board's intention that any investment in SNR would not trigger an offer under the Takeover Code or that any investment in the company's 74% owned subsidiary, Elitheni Coal (Pty) Limited ("Elitheni") would result in the Company's shareholding in Elitheni falling below 51.0%.
In the event that an investment is not forthcoming then the Board will have to renegotiate payment of the LCL facility and consider alternative ways of repaying LCL and financing the Company, including issues of equity or the taking on of additional debt. Whilst there can be no guarantee that such alternative funding will be available, the Board remains optimistic that current discussions with potential strategic investors will be successful.
For further information, please contact:
Strategic Natural Resources plc |
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Andy Brennan, Chairman Gabriel Ruhan, CEO | +44 (0)20 3328 5656 |
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Allenby Capital Limited - Nominated Adviser and Joint Broker |
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Nick Naylor/James Reeve | +44 (0) 20 3328 5656 |
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SP Angel Corporate Finance LLP - Joint Broker |
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Tercel Moore | +44 (0) 20 3463 2260 |
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FTI Consulting | +44 (0) 20 7831 3113 |
Ben Brewerton/Georgia Mann |
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For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk