AIM:
EMED
EMED
MINING PUBLIC LIMITED
(�EMED
Mining� or �the Company�)
ARRANGEMENT
OF NEW LOAN FACILITY
EMED
Mining announces that further to its previously reported �10 million standby
facility (�SEDA�) with Yorkville Associates LLC of New Jersey USA (�YA�), it has
made a GBP250k drawdown under this SEDA and also entered into a new loan
arrangement with YA Global Investments LP (�YA Global�), an associate of YA, to
raise a further US$4.7 million. This has been done to provide more
funding flexibility to the Company.
�250,000
has been raised under the SEDA from the issuance of 1,155,268 New Ordinary Shares at 21.64p per share
and US$ 4.7 million, net after expenses, is available by way of a cash advance,
should the Company elect to utilize the new facility. Repayments of such advance can be made in
shares or, at the election of the Company, in cash. As part of its remuneration,
upon a drawdown of the advance, YA Global will be granted 1.0 million options
over unissued shares in EMED Mining, exercisable at 50 pence per share within
four years. Further details of this cash advance facility are provided
below.
Based
on current engineering and financial analysis, the estimated funds required for
the potential resumption of mining at Proyecto Rio Tinto (�PRT�), acquisition
costs and other group activities total approximately US$120 million (�90 million
or �60 million). Should the Company elect to utilize the cash advance facility
and then proceed to exercise its PRT option, it intends to repay the advance
upon drawdown of project finance facilities currently being negotiated.
EMED
Mining�s Annual General Meeting is planned be held in April 2008 at which
shareholder approval will likely be sought for the exercise of the PRT option
and associated financial arrangements, subject to satisfaction of all conditions
precedent including receipt of all regulatory permits. The Company�s most recent
projections show that the earliest that the PRT production restart could occur
would be the third quarter of 2008.
Mr
Harry Anagnostaras-Adams, Managing Director of EMED Mining said:
�EMED
Mining continues to steadily build its confidence that the Proyecto de Rio Tinto
copper project in Spain will proceed and will be
worthwhile for all stakeholders in Andalucia and for a metal-starved world.
The continued refinement of our
financing capacity and support shows that our preparations are falling into
place as the project advances�
Terms
of Cash Advance Under new Loan Facility with YA Global
1.
The
cash advance available under the facility is US$ 4.7 million after fees and
costs of US$ 300,000, subject to funds being drawn down.
2.
The
interest rate is 8.0% per annum.
3.
The
advance is available for drawdown within 45 days and failure to draw down will
incur a fee of US$ 165,000
4.
There
are no repayments for nine months after the date the funds are drawn down after
which the repayments are in 18 monthly installments.
5.
Repayments
can be made in cash or shares at the election of the Company.
6.
If
the repayment is made by way of shares, the conversion price is the lower
of 120 per cent of the average of
the volume weighted average prices for the 5 consecutive trading days
immediately prior to the date the loan is drawn down (�Conversion Price�) or 95%
of the prevailing market price at the time of the
repayment.
7.
The
Company can elect to repay part or all of any advance early in cash subject to
an early repayment fee of 8.0% of the amount so paid.
8.
YA
Global can, subject to certain
restrictions, elect to convert the debt into shares at any time at the
Conversion Price. In this event, the Company can either issue the shares or pay
to YA Global the cash equivalent of the Conversion Price, plus the amount by
which the weighted average market price over a 5 day period at the time exceeds
the Conversion Price.
9.
The
parties agree that a further US$ 5 million may be advanced by YA Global to the
Company under the agreement at some future date.
10.
The
Company is obliged, if requested by YA Global, to apply 20% of any amount over
US$ 15 million raised after the date of this agreement to reduce any loan amount
outstanding.
11.
Draw
downs of the SEDA facility are restricted to a further �1 million between the
date of the loan drawdown and the
date the first repayment is due.
Thereafter, the SEDA is unavailable until any loan advance under this new
agreement is repaid.
-Ends-
Enquiries
EMED
Mining |
RFC
Corporate Finance |
Harry
Anagnostaras-Adams |
Stuart
Laing |
+357
9945 7843 |
+61
8 9480 2500 |
|
|
|
|
Fox-Davies
Capital |
Parkgreen
Communications |
Richard
Hail |
Justine
Howarth / Erica Nelson |
+44
207 936 5220 |
+44
20 7851 7480 |
|
|
Notes to Editors: About EMED Mining Public
Limited
EMED
Mining was admitted to trading on AIM in May 2005 following a placing of its
shares. In the two years since then the share price has increased from 8p to the
current 19.75p and market capitalisation has increased from approximately �4
million to approximately �30 million. The Company is based in
Cyprus and has a strong
commitment to responsible development of metal production operations in
Europe, with an initial focus on copper and
gold.
The
Company�s rapid growth reflects the experience of its specialist team and the
clarity of its strategy.
The
Group�s region of interest are the tectonic belts spanning across Europe and
over to the Middle East. The strategy is to
evaluate exploration and development opportunities in several jurisdictions
throughout this quality mineral belt and to promote sustainable development
practices through implementation of European Union and other leading-edge
international standards. The Company has, from the outset, strictly implemented
its Environmental & Community Policy which includes:
�
Integrating
environmental management into our business, planning and reporting
processes.
�
Promoting
a strong environmental ethic throughout the company and the
community.
�
Complying
with, as a minimum, all applicable local and European Union laws and
regulations.
�
Communicating
with community stakeholders in a responsible and transparent
manner.
In
the framework of our community relations policy, EMED Mining co-hosted
international conference on Responsible Mining and Environmental Protection in
Cyprus in 2006 and in
Slovakia in 2007. A similar
conference will be arranged in Spain in 2008 after other relevant
stakeholders are consulted.
EMED
Mining has now established a strong position in the following selected
zones:
�
Exploration
areas in Slovakia are centred on a cluster of
volcanic centres. Low-detection geochemical methods are being applied to these
areas for the first time together with open pit bulk mining concepts. The
principal targeted mineralisation style is low-grade, bulk-mineable porphyry
gold. The company has announced a gold discovery at Biely Vrch in Slovakia.
�
The
mines in Cyprus and at Rio
Tinto in Spain, located in the Iberian pyrite
belt, are probably amongst the best known in the world. EMED Mining�s goal is to
restart copper production at its projects in both of these well-endowed,
historical mining districts. Both Spain and Cyprus
are progressive members of the European Union and EMED Mining has been made to
feel welcome in both host countries. The styles of mineral deposits and
production techniques are similar in both mining districts.
�
EMED
Mining�s main prospects in Georgia are gold prospects within the
Upper
Racha
Licence, the country�s largest minerals licence with many untested prospects.
The Company has confirmed Russian Resources of 1.0 million ounces gold at the
Zopkhito Prospect and discovered high grade mineralisation at surface at other
prospects (detailed in 2006 Annual Report).
�
Exploration
areas in Turkey were vended into 34%-owned
KEFI Minerals Plc which was admitted to AIM in December 2006. KEFI Minerals owns
carefully selected licence areas in Turkey, as well as an extensive
proprietary database of regional and specific exploration data providing a
pipeline of further projects to evaluate. The KEFI Minerals team has mobilized
into the field to explore the company�s tenements and to expand the portfolio of
licenses as opportunities warrant. See www.kefi-minerals.com.
For
further information on the Company�s activities, visit www.emed-mining.com
or www.emed.tv.
Competent
Person for Reporting of Resources and Reserves
References
in this announcement to exploration results and potential, including the
reported resources in Georgia (under the Russian reporting
system), have been approved for release by Mr Ron
Cunneen, B.Sc. (Honours).
Mr Cunneen is Head of Exploration for EMED Mining and has more than 20
years� relevant experience in the field of activity concerned. He is a member of
The Australian Institute of Geoscientists. Mr
Cunneen consents to the inclusion in the announcement of the material in the
form and context in which it appears in this announcement.