Intl Mining & Infrast Corp PLC Bond Restructuring (5816K)

TIDMIMIC

RNS Number : 5816K

Intl Mining & Infrast Corp PLC

17 April 2015

17 April 2015

INTERNATIONAL MINING & INFRASTRUCTURE CORPORATION PLC

("IMIC" or the "Company")

Bond Restructuring

International Mining & Infrastructure Corporation plc (AIM: IMIC), the Company focused on unlocking the value of iron ore in Africa, is pleased to announce that it has reached an agreement with existing bondholders (the "Bondholders") in relation to a restructuring of its existing 8.125 per cent. unsecured bond instrument with a drawable value of up to US$50 million, of which US$10 million was drawn down in October 2012 (the "Bond").

The Company has successfully concluded the restructuring process with the following amendments made to the terms of the Bond:

-- The regular coupon payments in respect of the Bond will be reduced to reflect a rate of 5.0 per cent. of the nominal value of the Bond and paid annually, as opposed to the existing semi-annual arrangement.

-- The difference between the reduced coupon rate of 5.0 per cent. and the previous coupon rate of 8.125 per cent. will be accrued and repaid at maturity.

-- The maturity date of the Bond will be extended by 5 years from 18 October 2015 to 18 October 2020.

-- The Bond will be repaid on maturity at 122.32 per cent. of current nominal value to cover the interest payments differential and accrual to maturity, representing US$12,231,877.64 based on the current level of drawdown.

-- The Bondholders have agreed to these changes because of the confidence they have in the vision, drive and capacity of IMIC's Chairman, Ethelbert Cooper. The Bondholders shall be entitled to accelerated repayment if Ethelbert Cooper ceases to hold the office of Non-Executive Chairman of the Company.

   --      The costs of the Bond restructuring amount to approximately US$100,000. 

Under the new terms, the regular interest payments in respect of the Bond will substantially decrease from US$812,500 per annum to US$500,000, assuming no further amounts are drawn down, and payment of the annual interest charges will change from semi-annual to annual. The interest payments will be made on 18 October each year until the Bond maturity date, with the first payment of US$500,000 to be made on 18 October 2015 which includes US$250,000 in respect of the period from 18 October 2014 to 18 April 2015 under the newly agreed terms of the Bond.

The restructuring is expected to be of significant benefit to IMIC in the medium to long term, as it will help the Company to manage its cash position effectively whilst continuing to develop its iron ore projects in Cameroon.

The remaining bonds held by the Company to date amount to US$87.7 million, with a total cash interest due in 2015 of approximately US$8.1 million, which includes the restructured Bond interest. Having reviewed the Company's debt positions, the Company has engaged in further restructuring negotiations. We are making progress and will provide a further update to the market in due course.

Ethelbert Cooper, IMIC's Chairman, commented:

"This restructuring increases our cash flexibility over the next few years and introduces a cash payment profile which is more appropriate in the current economic environment. In addition, this agreement demonstrates cooperation and ongoing support of the existing Bondholders as well as IMIC's ability to find solutions to allow efficient fund allocation to progress the development of our key assets."

For further information, please contact:

 
 International Mining & Infrastructure           www.imicplc.com 
  Corporation plc 
 Ethelbert Cooper, Chairman 
  Haresh Kanabar, Chief Financial                [phone] 
  Officer                                                   3340 
 Strand Hanson Limited - Financial        www.strandhanson.co.uk 
  & Nominated Adviser                            [phone] 
  James Spinney / Ritchie Balmer                            3494 
  / James Bellman 
 Pareto Securities Limited - Sole              www.paretosec.com 
  Broker                                         [phone] 
  Guy Wilkes / Will Slack                                   4370 
 Buchanan - Financial PR                     www.buchanan.uk.com 
  Mark Court / Sophie Cowles                     [phone] 
                                                            5000 
 

About IMIC

IMIC's strategy is, in conjunction with its partner AIOG, working to develop fundable solutions to infrastructure provision for iron ore resources in West and Central Africa. In support IMIC will seek to acquire interests in iron ore projects that would benefit from a specific infrastructure solution. IMIC made its first investment with the Dec 2013 acquisition of Afferro Mining Inc, taking ownership of four iron ore deposits in Cameroon, the most advanced asset being Nkout. IMIC plans to continue to develop its assets, including accelerating the feasibility studies of the smaller Ntem deposit, which is located only 80km from Kribi deep water port.

IMIC's focus will initially be on iron ore opportunities in West and Central Africa. The demand for iron ore is currently being driven by China which consumes approximately 70 per cent. of the world's current annual production. As the urbanization of China continues demand for iron ore is expected to remain at significant levels through to 2030. The iron ore projects currently identified in West and Central Africa have the potential to produce at least 400 million tonnes of iron ore each year. This would establish Africa as a global player, alongside Australia and Brazil, in the iron ore industry.

In order to help deliver its infrastructure solutions, IMIC and AIOG have established strategic partnerships with various Chinese state owned companies. These companies are involved in railway and port construction, power, iron ore beneficiation and iron ore marketing. These relationships are intended to give IMIC and AIOG the ability to work with relevant governments and financial institutions to deliver infrastructure solutions and to guarantee the onward sale of iron ore in China and other emerging world markets.

IMIC shares are traded on the London Stock Exchange's AIM market under the ticker symbol IMIC.

This information is provided by RNS

The company news service from the London Stock Exchange

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