Intl Mining & Infrast Corp PLC Loan Facility Agreement (8714Z)

TIDMIMIC

RNS Number : 8714Z

Intl Mining & Infrast Corp PLC

23 September 2015

23 September 2015

INTERNATIONAL MINING & INFRASTRUCTURE CORPORATION PLC

("IMIC" or the "Company")

Loan Facility Agreement

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 entered into an unsecured loan facility agreement ("Loan Agreement") with Heretown Securities Corporation Ltd which provides a loan facility of up to a maximum of USD $1,000,000 (the "Loan") for working capital purposes.

Under the Loan Agreement, the Loan may be drawn down in tranches of varying amounts, where any amounts drawn down and subsequently repaid cannot be redrawn. The Loan shall be repayable by 31 December 2015 and shall bear interest at a rate of 10% per annum which shall be paid together with the capital sum of the Loan at the end of the loan facility period. The Loan may be extended by mutual agreement.

Related Party Transaction

Heretown Securities Corporation Ltd is beneficially owned by Mr. Ethelbert J L Cooper, the Company's Non-Executive Chairman, and accordingly, the loan is deemed to be a related party transaction under the AIM Rules. The independent directors of the Company for this purpose (being all of the directors of IMIC except for Mr. Cooper), having consulted with Strand Hanson Limited, the Company's Nominated Adviser, consider that the terms of the Loan Agreement are fair and reasonable insofar as the shareholders of IMIC are concerned.

For further information, please contact:

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

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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September 23, 2015 02:00 ET (06:00 GMT)