17 Jul 2013 07:00
Strategic Natural Resources Plc
("SNR" or the "Company")
Update on short term loan
Further to the announcement made on 12 July 2013, The board of SNR (the "Board") confirms that discussions continue to progress positively with a number of selected potential investors and that the Board hopes to be able to conclude a transaction in the near future¹. The Board views an investment by a strategic investor as an opportunity to accelerate the development of the Elitheni Mine and to secure the long term funding that will also allow the Company to refinance its existing short term bridging loan with Land Consultants Limited ("LCL") (which is repayable by July 30th 2013), as well as providing funding for SNR's growth plans. The Board is mindful of the approaching date for repayment of the LCL loan and is pleased to confirm that SNR is keeping LCL fully informed in respect of the strategic investment process, that LCL remain supportive of the Company and that it is LCL's current intention to extend the loan repayment deadline so as to facilitate the completion of the proposed investment by a strategic investor, should such an extension be required.
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.
¹It 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%.
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