Share Name Share Symbol Market Type Share ISIN Share Description
VI Mining Plc NEX:VIM NEX Ordinary Share JE00BDFKM100
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -5.00 -25.0% 15.00 15.00 25.00 20.00 15.00 20.00 5,000 10:59:33
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

VI Mining PLC Corporate and Funding Update

19/07/2019 2:46pm

UK Regulatory (RNS & others)


VI Mining (NEX:VIM)
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RNS Number : 1671G

VI Mining PLC

19 July 2019

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW.

19 July 2019

VI Mining Plc

(the "Company" or "VI Mining"; NEX: VIM)

Corporate and Funding Update

The Board is pleased to provide an update on the group's refinancing and relationship with the vendors of Minaspampa and Rosario.

Funding Update

The company has been funded through a combination of debt instruments and equity raised in the NEX initial public offering on 2 March 2018.

David Sumner debt facilities

David Sumner, the CEO has historically been the sole funder to the group with two debt financing facilities: a $10 million term loan facility; and a GBP39 million (circa $53 million) term loan facility.

At 19 July 2019, the $10 million facility was fully drawn down, and a further $3.0 million ($2.4 million since 1 January 2019) has been drawn down against the GBP39 million facility.

Sumner Group Holdings Security Token Offering Funding

In March 2019, Sumner Group Holdings Limited ("SGH"), the majority shareholder of VI Mining plc, of which David Sumner is CEO, announced that it commenced a security token offering ("STO") private placement ahead of a planned listing on the London Stock Exchange.

SGH has informed the Company that the STO private placement is expected to complete its first round close in Summer 2019 with completion scheduled for Autumn 2019. Subject to SGH board and VI Mining board approvals, a proportion of the proceeds from the STO private placement will be used to re-finance VI Mining through a new SGH debt facility replacing the current David Sumner loan facilities.

Tassili short term funding update

As previously announced, the Company entered into a loan agreement with Tassili Jewellery LLC ("Tassili") for $2,500,000, which was drawn down in full. The initial repayment date, together with a programme to deliver gold at pre--agreed rates, was subsequently renegotiated. A total of $1.3 million has been repaid as of 18 July 2019 ($550,000 has been repaid during 2019). It has been agreed that the balance of $1.2 million still owed will be refinanced from the proposed SGH replacement debt facility.

Minaspampa and Rosario consideration payment terms

On 2 February 2018, VI Mining entered into an agreement to acquire the Minaspampa and Rosario projects (both located in the La Libertad region in the northwest of Peru) for an aggregate cash consideration of $51.3 million and equity consideration of 2,000,000 ordinary shares of the Company.

In the period up to 18 July 2019 a total of $9.1 million has been paid in cash to the vendors. The Company and the vendors are in regular discussions on the structure and timing of the remaining $42.2m consideration payments for these projects. The relationship with the Vendors continues to be strong and supportive. Following receipt of the new funding expected from the SGH STO private placement, the Company expects to finalise the contract revision with the Vendors.

---ENDS---

Contact:

 
 VI Mining                    VSA Capital Limited 
  David Sumner (CEO)           NEX Corporate Adviser 
  David.Sumner@vimining.com    Andrew Raca, Pascal Wiese 
  +971 4 244 3730              +44 (0)20 3005 5000 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

NEXUKSORKOABAAR

(END) Dow Jones Newswires

July 19, 2019 09:46 ET (13:46 GMT)

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