Bridging Finance Facility

12 Feb 2009 09:22



AIM: EMED 12th February 2009

EMED Mining Arranges a Bridging Finance Facility 

EMED Mining Public Limited ("EMED Mining") wishes to announce that it has entered into arrangements with Resource Capital Fund IV L.P ("RCF") and RMB Australia Holdings Limited ("RMB"), two of its existing shareholders, for the provision of US$1 million bridging finance in the form of promissory notes.

The bridging finance is an interim measure to provide ongoing working capital to EMED Mining whilst it seeks to conclude a longer term financing agreement with RCF and RMB. The finalisation of this longer term financing facility is expected to occur within the next two months, allowing time to put in place the associated security arrangements and intercreditor agreements.

Interest will be payable by EMED Mining in respect of the outstanding principal amount borrowed under the promissory notes from RCF and RMB quarterly in arrears at a rate of 7.5% per annum. The amounts outstanding under the promissory notes are repayable by EMED Mining on demand from the lenders which can be served on EMED Mining at any time.

As security for the bridging finance, EMED Mining is granting a charge over the shares in its subsidiary EMED Holdings (UK) Limited in favour of RCF as trustee for itself and RMB (and YA Global Investments, L.P., with whom EMED Mining has an existing convertible loan facility).

The split of funds between the lenders is US$764,706 from RCF and US$235,294 from RMB. It is noted that RCF currently holds 15% of EMED Mining's issued ordinary share capital and is therefore a "related party" under the AIM Rules. With the exception of Ross Bhappu, who is also a director of RCF, the directors of EMED consider, having consulted with RFC Corporate Finance Ltd, its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

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