Peninsular Gold Limited Financing, Bank Repayments and Audited Accounts (7282A)

TIDMPGL

RNS Number : 7282A

Peninsular Gold Limited

24 December 2014

PENINSULAR GOLD LIMITED

("Peninsular" or the "Company")

Update on Financing and Bank Repayments

and

Delay to Annual Audited Accounts

Update on Financing and Bank Repayments

Further to its announcement of 2 December 2014, Peninsular Gold Limited announces that its wholly owned subsidiary, Raub Australian Gold Mining Sdn. Bhd. ("RAGM") has secured agreement from Alkhair International Islamic Bank Ltd. ("Alkhair") to immediately defer the quarterly capital repayments of USD750,000 which were due to commence in December 2014 until March 2015, whilst it also considers RAGM's request for a six month deferral until June 2015. RAGM has a bank loan of USD6 million with Alkhair which is repayable in 8 quarterly instalments of USD750,000.

The Group continues to negotiate arrangements with its other lender, Bank Rakyat Kerjasama Malaysia Bhd. ("Bank Rakyat") and its trade and other creditors and will update the market as soon as practicable.

As set out in the announcement on 2 December 2014, the Company is currently looking to raise additional funds to finance itself until operations are restarted. Even with the support of its Malaysian lenders and creditors for deferral of payments, the Group will require interim finance to be raised in January 2015 in order to cover the Group's working capital requirements until the RAGM plant can be restarted, which is currently estimated during Q2 2015. Peninsular currently estimates that it will require approximately GBP2 million of interim finance to meet its working capital and re-commencement costs. However if there is any delay in the restarting of the plant then additional funding may be required.

At this time, while it is the Group's expectation it will be able to resolve the current issues in order to re-commence production at the RAGM plant, there is not any certainty that operational cashflows will be in time, or sufficient, to meet repayments for the Group's borrowing facilities (including the convertible loan notes). Consequently, the Group is reviewing its re-financing options.

Company's Annual Report

Further to the announcement on 2 December 2014, the Company confirms that there will be a delay in the publication of the Company's annual report and accounts for the year ended 30 June 2014 and these will not be released by 31 December 2014, as required under the AIM Rules for Companies.

Consequently, trading in the Company's shares shall remain suspended pending further clarification of the Company's financial position and the publication of its annual report and accounts.

Further announcements will be made when appropriate.

 
 Dato' Sri Andrew TY             Patrick Watson 
  Kam                             Finance Director 
  Chairman and Chief Executive    Peninsular Gold Ltd. 
  Peninsular Gold Limited         Tel: [phone] 
  Tel: [phone] 
------------------------------  ------------------------- 
 Samantha Harrison               Colin Rowbury 
  Nominated Advisor               Broker 
  RFC Ambrian Limited             Daniel Stewart & Co. 
  Tel: [phone]             Ltd. 
  6800                            Tel: [phone] 
                                  6936 
------------------------------  ------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

FURBBBDDIGDBGSS