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TIDMFEP
RNS Number : 1403E
Forum Energy Plc
25 May 2012
25 May 2012
FORUM ENERGY PLC
("Forum" or the "Company")
Increase in loan facility from Philex Mining Corporation
The Board of Forum is pleased to announce that Forum Philippines Holdings Limited, a wholly-owned subsidiary of the Company, has today agreed an increase in its existing loan facility agreement with Philex Mining Corporation (the "Facility").
The Facility has been increased from US$10 million to US$15 million. The Facility is unchanged otherwise from the original three year Facility which was announced on 24 November 2010, and which has now been drawn down in full. The repayment date for all amounts drawn under the Facility will therefore remain as 24 November 2013, and funds will continue to be borrowed at an interest rate of LIBOR + 4.5%. The Company also remains as the guarantor under the Facility.
The increase in the Facility will assist in funding Forum's working capital requirements, in particular in the planning stages of the second sub-phase of the work programme for SC72, the Company's principal asset.
Philex Mining Corporation is the parent company of Forum's two principal shareholders, Philex Petroleum Corporation and FEC Resources Inc, and is therefore a related party of the Company. As a result, the increase in the facility is a related party transaction under the AIM Rules for Companies. The independent director of the Company considers, having consulted with Execution Noble & Company Limited, the Company's nominated adviser, that the terms of the Facility are fair and reasonable insofar as the Company's shareholders are concerned.
Andrew Mullins, Executive Director, commented:
"We are delighted to have been able to arrange the increase in the Facility to US$15 million, on the same attractive terms. The Facility will enable the Company to move forward with planning the SC72 drilling programme. As previously announced, we will continue discussions with our major shareholders, our joint venture partner and our advisors to determine how the full SC72 drilling programme will be funded. We look forward to releasing further updates as appropriate."
For further information please contact:
Forum Energy Plc
Andrew Mullins, Tel: +44 (0) 1932 445 344
Executive Director
Company Secretary
Execution Noble & Company Limited
Harry Stockdale Tel: +44 (0) 20 3429 1428
Or visit the Company's website:
www.forumenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
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