Strategic Natural Resources PLC Update on discussions with creditors and funding (5792F)

TIDMSNRP

RNS Number : 5792F

Strategic Natural Resources PLC

25 April 2014

Strategic Natural Resources Plc

("SNR" or the "Company")

Update on discussions with creditors and funding

Arbitration proceedings

Further to the announcement by the Company on 10 December 2013, the board of SNR, the AIM quoted natural resources developer operating in South Africa, which indirectly owns 74% of Elitheni Coal (Pty) Limited ("Elitheni"), announces that Elitheni has concluded its arbitration proceedings with certain Elitheni creditors which has resulted in the payment by Elitheni to those creditors of ZAR5.4 million (c. GBP303,000), plus costs associated with the arbitration of ZAR600,000 (c. GBP33,000). This payment is less than was being claimed by the creditors and Elitheni will be returned the balance of the funds which it had previously deposited with the court in South Africa at the start of the arbitration proceedings.

Negotiations with major creditors

The Board of SNR remains in discussions with its major creditors and is in discussions with London Commodity Brokers ("LCB") regarding the amounts owed to LCB pursuant to the Trasteel off-take agreement. The Board understands that the winding up petition, further details of which were announced on 27 March 2014 will be heard by the Company's Court in London on 12 May 2014, unless settlement can be reached prior to this date.

In addition, further to the announcement by the Company on 27 March 2014, SNR has received notice from Thelo Rolling Stock Leasing (Pty) Ltd ("Thelo") that it has applied to the Arbitration Foundation of South Africa to instigate arbitration proceedings against Elitheni. The Board remains in discussions with Thelo with regards to the settlement of these amounts.

Update on strategic investor

The Company remains in discussions with a potential strategic investor and hopes to soon be in a position to finalise and announce the terms of a fundraising, to be effected through the issue of new ordinary shares of SNR at a discount to the current share price.

There can be no guarantees that these discussions will result in a successful fundraising and in the event that the Company is unable to successfully conclude these funding discussions then the board of SNR will have to take steps to protect the interests of the Company's creditors.

Further updates on the Board's fundraising efforts and negotiations with creditors will be provided as and when appropriate.

For further information, please contact:

 
 Strategic Natural Resources plc 
--------------------------------------------------------  --------------------- 
 Andy Brennan, Chairman 
  Gabriel Ruhan, CEO                                       [phone] 
--------------------------------------------------------  --------------------- 
 
 Allenby Capital Limited - Nominated Adviser and Broker 
--------------------------------------------------------  --------------------- 
 Nick Naylor/Mark Connelly/James Reeve                     [phone] 
--------------------------------------------------------  --------------------- 
 
 FTI Consulting 
--------------------------------------------------------  --------------------- 
 Ben Brewerton/Georgia Mann                                [phone] 
--------------------------------------------------------  --------------------- 
 

For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCZELFLZZFLBBD