Loan Facility Agreement

 

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RNS Number : 1395N 
Monterrico Metals PLC 
11 February 2009 
 

Monterrico Metals plc 
("Monterrico" or the "Company") 
 
 
11 February 2009 
Loan Facility Agreement 
 
 
 
 
Monterrico Metals plc (AIM : MNA) announces that it has entered into a further 
loan facility agreement (the "Loan Facility") with Xiamen Zijin Tongguan 
Investment Development Co., Ltd ("Zijin Consortium"), the majority shareholder 
of the Company. The previous loan agreements with Zijin Consortium of up to GBP2 
million, US$8 million and US$10 million (which was revised to US$5 million plus 
GBP 2.55 million), were extended to be repaid on 30 April 2009, 3 July 2009 and 
2 February 2010 respectively. The board is in discussions with the Zijin 
Consortium to extend the term of the loans due to expire this year. 
 
 
The Loan Facility is for an aggregate amount of up to US$5 million at an 
interest rate of not greater than 1 per cent above LIBOR, as published by the 
British Bankers Association (BBA). The loan is repayable on 9 February 2010. 
 
 
The proceeds from the Loan Facility, along with the Company's existing cash 
balances, will be used to meet the Company's anticipated working capital needs 
this year. 
 
 
The Loan Facility constitutes a related party transaction for the purposes of 
the AIM Rules. The Directors of Monterrico (other than Fusheng Lan, Wenzhou 
Huang and Xiaodong Huang who are also directors of the Zijin Consortium, and 
Guobin Hu, who is General Manager of Zijin Consortium) consider, after having 
consulted with Monterrico's nominated adviser, Evolution Securities Limited, 
that the terms of the Loan Facility are fair and reasonable insofar as the 
Company's shareholders are concerned. 
 
 
Enquiries: 
For more information please contact: 
Monterrico Metals plc 
Susan Li, Finance Director    [phone] 
Andrew Bristow, Investor Relations Manager    [phone] 
EVOLUTION SECURITIES LIMITED 
(Nominated adviser)     [phone] 
Rob Collins 
Barry Saint 
Adam James 
Esther Lee 
EVOLUTION SECURITIES CHINA LIMITED 
(Financial adviser and broker)    [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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