Emerging Market Minerals PLC Unsecured Loan Facility (5600T)

TIDMEMM

RNS Number : 5600T

Emerging Market Minerals PLC

30 March 2016

30 March 2016

Emerging Market Minerals Plc

("Emerging Market Minerals" or the "Company")

Unsecured Loan Facility

Emerging Market Minerals (AIM: EMM), the AIM quoted uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces that it has entered into a working capital loan facility (the "Facility") with Matryoshka Ltd ("Matryoshka"), a company wholly beneficially owned by Mr Martin Nicholls, Executive Chairman of the Company, for an amount of GBP100,000. The Company has drawn down the Facility in full.

The Facility is unsecured and has a fixed term of eighteen months, at which time it will be repayable in full, together with an interest payment, accrued daily, of five per cent. per annum, in cash.

Whilst the proceeds of the Facility are being used for the Company's immediate working capital purposes, the ability of the Company to continue as a going concern will be dependent on raising further funds to meet its ongoing operational and capital commitments, including those relating to sourcing, evaluating and acquiring new assets.

The Board currently remains confident that it will be able to secure additional working capital in the short term, as required, and further announcements will be made in due course as appropriate.

The Board and its advisers are currently exploring various financing options, but if further funding cannot be secured in the near term from the Company's existing major shareholders and/or potential new investors, or alternative sources of potential funding are not available, the Board considers that it is highly likely that the Company will become insolvent and appropriate insolvency proceedings would ensue.

Martin Nicholls is a director of the Company and, as such, he is a related party of the Company pursuant to Rule 13 of the AIM Rules for Companies. Therefore, the Company entering into the Facility with Matryoshka is a related party transaction pursuant to AIM Rule 13.

The independent directors, as defined by the AIM Rules for the purposes of AIM Rule 13 (being Bernard Olivier and Roy Spencer), having consulted with the Company's nominated adviser, Strand Hanson Limited, consider that the terms of the Facility are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

 
 Emerging Market Minerals                   Tel: [phone] 
  Plc 
 Martin Nicholls, Executive 
  Chairman 
  Bernard Olivier, Non-Executive 
  Director 
 
 Strand Hanson Limited (Nominated            Tel: [phone] 
  Adviser)                                                  3494 
 James Harris 
 Matthew Chandler 
 James Dance 
 
 Pareto Securities Limited                   Tel: [phone] 
  (Broker)                                                  4370 
 Guy Wilkes 
 
 or visit: www.emergingmarketminerals.com 
 

- Ends -

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCSDDFFSFMSESD

(END) Dow Jones Newswires

March 30, 2016 07:08 ET (11:08 GMT)