Last checked at 6 Jun 2016 07:00
6th June 2016
Wishbone Gold Plc
Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources
Wishbone Gold PLC ("Wishbone Gold" or the "Company")
Signing of Loan Facility
Wishbone Gold Plc, the precious metals trading and exploration company, announces that it has agreed a two-year loan facility of US$3m from Sanderson Capital Partners (the "Facility") to support its gold trading business and for general working capital.
The terms of the Facility are that it can be drawn in multiples of US $100,000 at any time during the period of the facility and can be repaid at any time. It carries interest at 2% per annum and in addition 0.5% is payable on each trade of precious metals where the Facility is utilised either to support a letter of credit or in direct trading. The Facility expires on 6 June 2018 and is unsecured as long as no breach of the terms of the facility has occurred..
A 10% commitment fee is payable in ordinary shares of Wishbone. These shares will be issued at a price of 0.54 pence per ordinary share, being the closing mid-market price of the Company's shares on 3 June 2016. Application will be made to AIM for the admission of these 3,826,611 ordinary shares of 0.1p each in the Company (the "Commitment Fee Shares"). Admission of the Commitment Fee Shares is expected to occur on 10 June 2016. Following the issue of the Commitment Fee Shares, and for the purposes of the Disclosure and Transparency Rules, the Company's total issued share capital on Admission will consist of 1,003,816,975 Ordinary Shares.
Richard Poulden, Chairman and CEO of Wishbone Gold Plc commented: "I believe this is an excellent deal for Wishbone. Sanderson have recognised the lower risk opportunity of the project with a low interest rate and other fees linked entirely to the success of our operations. Thus far we have traded gold in small volumes constrained by working capital and this enables us to move on the larger contracts, which we have in place. We will issue a trading update as soon as we are able to do so."
ENDS
For further information, please contact:
Wishbone Gold Plc
Richard Poulden, CEO Tel: +44 207 812 0645
Allenby Capital
Virginia Bull / James Thomas Tel: +44 20 3328 5656
Damson Communications
Abigail Stuart-Menteth Tel: +44 207 812 0645
abigail@damsonpr.com
Amelia Hubert amelia.hubert@damsonpr.com