Leed Resources PLC Investment in High Mannor (6594S)

TIDMLDP

RNS Number : 6594S

Leed Resources PLC

21 March 2016

21 March 2016

LEED RESOURCES PLC

("Leed" or "the Company")

Investment in High Mannor

Leed Resources plc, (AIM: LDP), the natural resource investing company, announces that it has remitted A$250,000 to support the working capital of High Mannor ("HM"), a company controlled by Battalion International Limited ("Battalion"). Leed announced on 15 February 2016 that it had entered into a non-binding heads of terms agreement, which included an option to acquire up to 100% of Battalion. The loan will be secured against trade receivables and stock held at the quarrying and processing site of HM.

HM has previously relied on alternative sources of working capital finance to fund the gap between production and payment for the blocks and panels. These sources of financing have now expired and accordingly, Leed along with two other Battalion loan note holders, have agreed to provide this short term working capital facility, which will accrue interest at a rate of 12% per annum.

During the course of our ongoing due diligence on HM, it has recently been discovered that one senior member of HM staff has been carrying out fraudulent activities which appear to have significantly affected the profitability of HM's business over the past few months. The management of HM are seeking to quantify the quantum of the loss to the business and the individual concerned has now been dismissed and the facts reported to the police in Perth. Leed is in active discussions with the remaining HM management to ensure stronger controls moving forward and to assess the impact of these events on the current business of HM.

Leed is continuing with due diligence in connection with the potential acquisition of Battalion and HM.

Further updates will be made as necessary.

 
 For further information, please 
  contact: 
  Leed Resources plc 
 Ian Gibbs 
 Charles Zorab       Tel: [phone] 
                      4214 
 Nomad and Broker 
 SP Angel Corporate Finance LLP 
 Ewan Leggat/Laura   Tel: [phone] 
  Harrison            0470 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 21, 2016 03:00 ET (07:00 GMT)