Baobab Resources PLC Bridging Finance Facility (2229W)

TIDMBAO

RNS Number : 2229W

Baobab Resources PLC

05 November 2014

5 November 2014

Baobab Resources Plc

("Baobab" or the "Company")

Bridging Finance Facility

Baobab Resources Plc is pleased to announce that it has agreed a US$1.0 million unsecured and interest free bridging finance facility (the "Loan") with African Minerals Exploration & Development Fund Sicar SCA ("Amed"). The proceeds of the Loan will be utilised by the Company as additional working capital and for general corporate purposes.

The Loan is repayable on 1 September 2015 and there are no penalties for early repayment. Amed has the right to call for the full repayment of the Loan at any time after 19 December 2014 with ten business days written notice to such effect if it, in its sole discretion, considers the financial position of the Borrower to be such that the Loan could be repaid in full. In the event the Company fails to repay in full on the due or requested date, a Notice of Default may be issued by Amed, upon which the whole amount of the loan plus interest at the rate of five per cent per annum from the Notice of Default will become payable.

The Subscription is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors of the Company consider, having consulted with its nominated adviser Canaccord Genuity Limited, that the terms of the proposed transaction are fair and reasonable insofar as its shareholders are concerned.

ENQUIRIES

 
 Baobab Resources 
                                   [phone] 
 Ben James: Managing Director       404 
 Jeremy Dowler: Chairman           [phone] 
                                   [phone] 
 Frank Eagar: Finance Director      404 
 
 Canaccord Genuity 
 NOMAD and Broker 
 Neil Elliot / Chris Fincken       Tel: +44 20 
                                    7523 8000 
 
 Tavistock 
 Financial Public Relations 
                                   [phone] 
 Emily Fenton / Nuala Gallagher     3150 
 

ABOUT BAOBAB RESOURCES PLC

Baobab Resources is an exploration and development company focused on the Tete pig iron and ferro-vanadium project in Mozambique, in which the International Finance Corporation holds a 15% participatory interest. The Company has been listed on the AIM of the London Stock Exchange (ticker BAO) since 2007.

This information is provided by RNS

The company news service from the London Stock Exchange

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