New Activity / Funds raised

9 Nov 2007 07:01

Tecteon PLC09 November 2007 TECTEON PLC Announcement New Activity / Additional Funds Raised Tecteon PLC ("Tecteon" or "the Company"), the provider of voice quality, comfortlistening and hearing protection technologies and solutions, announces that ithas agreed to enter into a new joint venture ("the Transaction") with Zamcu, acompany controlled by Minerale Afrique Limited, which holds the licence torecover 18,000 tons per month of ores including copper, zinc and lead in Zambiaand their transportation to South Africa for sale. Since the Transaction involves the commencement of a new strategy for theCompany the Board has elected to make the Transaction subject to the approval ofthe Company's shareholders. The Directors intend the signing of the jointventure to be the first stage in the development of the Company as a trader inand processor of base metals and a circular convening a general meeting of theCompany to approve the Transaction will be posted to shareholders in due course. The proposed joint venture between Tecteon and Zamcu will involve the financingand off take of copper, zinc and lead for sale in China. The directors ofTecteon expect approximately 3,000 to 6,000 tons of copper to be financed andsold per month and 3,000 tons of both zinc and lead. Tecteon and Zamcu will beentitled to share of the profits from the joint venture's trading activities onthe basis of 60% / 40% respectively. In order to provide the finance for this new activity and provide additionalworking capital for the existing voice quality technologies business, theDirectors have agreed to take an unsecured loan of £300,000 from Quazer GroupCorporation, ("the Lender"). The loan from the Lender carries interest at the rate of 8% per annum and isrepayable on 31 October 2008 unless converted before then, at the option ofeither party, in whole or in part into new Ordinary Shares of Tecteon plc at aconversion price of 1 ordinary share for each 1p of loan converted. In addition, the Lender is entitled to subscribe for one Warrant for everyOrdinary share so converted by paying 1p per Warrant. The exercise price of theWarrants will be 1p per share and the warrants will expire one year after issue. 9th November 2007For further information please contact: Tecteon PLC Tel: 020 7408 1181Masoud Alikhani, Chairman http://www.tecteon.com Seymour Pierce Ltd Tel: 020 7107 8000Jonathan Wright ENDS This information is provided by RNS The company news service from the London Stock Exchange