Metals Exploration PLC Rescheduled Facility Agreement (2348S)

TIDMMTL

RNS Number : 2348S

Metals Exploration PLC

19 December 2016

19 December 2016

METALS EXPLORATION PLC

Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the "Company"), the natural resources exploration and development company with assets in the Pacific Rim region.

Rescheduled Facility Agreement

Metals Exploration, through its Philippine subsidiary company FCF Minerals Corporation ("FCF") advises that it has agreed the reschedule of the Runruno Facility Agreement as amended with its lenders, The Hongkong and Shanghai Banking Corporation Limited and BNP Paribas.

The amended commercial terms applying to the rescheduled loan amount of US $81m are as follows:

-- pre Project Completion(1) the interest rate on the facility is US 6 months' LIBOR plus a 5.75% margin ,

   --      post Project Completion  the margin reduces to 4.75%, 

-- a quarterly capital repayment profile has been agreed wherein the tenor is extended to 31 December 2019

 
 Repayment     Principal 
    Date         Amount 
-----------  ------------- 
   31 Mar 
     17       ($4,240,000) 
-----------  ------------- 
   30 Jun 
     17       ($6,480,000) 
-----------  ------------- 
   30 Sep 
     17       ($6,480,000) 
-----------  ------------- 
   31 Dec 
     17       ($6,480,000) 
-----------  ------------- 
   31 Mar 
     18       ($6,480,000) 
-----------  ------------- 
   30 Jun 
     18       ($7,290,000) 
-----------  ------------- 
   30 Sep 
     18       ($7,290,000) 
-----------  ------------- 
   31 Dec 
     18       ($8,100,000) 
-----------  ------------- 
   31 Mar 
     19       ($8,100,000) 
-----------  ------------- 
   30 Jun 
     19       ($8,100,000) 
-----------  ------------- 
   30 Sep 
     19       ($8,100,000) 
-----------  ------------- 
   31 Dec 
     19       ($3,860,000) 
-----------  ------------- 
 
   --      the facility includes an accelerated cash sweep repayment of 35% of available free cash, 

-- an arrangement fee of 1.25% (US $1,012,500) is payable in four quarterly instalments to the lenders to secure the terms of the rescheduled facility,

-- at the election of the Lenders, mandatory hedging of 35% of forecast annual gold production during the revised term of the facility must be established. Currently the Company has sufficient hedging in place until September 2018. No additional forward gold sale contracts have been requested to be entered into at this juncture.

(1) Project Completion occurs following the successful application of a 90 day physical and financial performance testing regime during which design throughput, recovery and operating costs are demonstrated. Typically the testing will be initiated by the Company once the plant ramp-up is complete and following a period of stable operations.

For further information please visit or contact www.metalsexploration.com

 
 
                         +63 (0) 
                         9189 795    Nominated Adviser: STOCKDALE 
  Ian R. Holzberger      992          SECURITIES Ltd 
 
                         +61 (0)                              +44 (0) 
                         418 886     Robert Finlay, Edward     207 601 
  (Chairman)             165          Thomas                   6100 
 
                        +61 (0) 
  Liam A.                498 648 
   Ruddy                 615 
 
                         +44 (0) 
  (Company               7911 719    Public Relations: 
   Secretary)            960          TAVISTOCK 
 
                                                               +44 (0) 
                                     Barnaby Hayward;          207 920 
                                      Jos Simson               3150 
--------------------  ----------- 
 
 
                                     Broker: SP ANGEL CORPORATE 
                                      FINANCE LLP 
 
                                                               +44 (0) 
                                                               203 470 
                                     Ewan Leggat;              0470 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 19, 2016 05:48 ET (10:48 GMT)