FOR IMMEDIATE RELEASE
Vancouver, British Columbia, July 9, 2008, Global Minerals
Ltd. (TSX: CTG) (FRANKFURT: DFP) is pleased to announce that it
has engaged Investec Bank (UK) Limited (�Investec�) to provide a
convertible promissory note of up to US$2,000,000. Investec�s commitment
is subject to completion of due diligence and formal documentation and
Investec�s final internal approvals. This strategic funding will provide
Global Minerals with timely working capital to meet its short-term needs
as it pursues opportunities for long-term financing.
The loan will be used by Global Minerals primarily for expenditures
related to its Strieborn� project. The proceeds will allow the Company to
part finance the pre-feasibility study and permitting related to the
Streiborna polymetallic project in Slovakia, and to provide working
The Company entered into a Mandate Letter and Indicative Term Sheet
with Investec, to finalize the convertible loan facility in the principal
amount of up to US$2,000,000. The loan will bear interest at the
rate of USD Libor plus 10% per annum, with interest payable quarterly, in
arrears. It is expected that the facility will be repaid in full upon the
earlier of any capital raising by Global Minerals in the 12 months
following the date of the facility agreement or first drawdown of a
senior project finance facility. Investec will have the right to
exchange all or part of the outstanding principal under the facility into
common shares of Global Minerals by way of detachable warrants, at a
conversion price equal to 120% of the average of the volume�weighted
daily closing price of Global Minerals� shares on the TSX Venture
Exchange for the 20 trading days preceding and including the date of
acceptance of the Term Sheet. The conversion terms are subject to
Exchange acceptance. If Global Minerals� common shares trade at a
price 180%, 200% or 220% greater than the conversion price for 20
consecutive trading days, the Company will have the option to force
exercise of the 25%, 50% and 25% of the warrants, respectively.
Investec will receive an arranging fee of 5% of the debt facility
payable in cash or, subject to the acceptance of the TSX Venture
Exchange, the equivalent value in the Company�s common shares on the
earlier of the first drawdown under the debt facility and one month after
signing of the facility agreement.
Investec will have the first right of refusal on arranging the
Company�s future funding needs for the Streiborna project.
- Current NI 43-101
compliant resource calculation, completed by an independent
consulting firm AMC Pty Ltd., estimated a current resource (measured
and indicated) of 1.925 M tonnes at 231.7 g/t Silver, 1.1% Copper,
0.7% Antimony and 33.65% Fe
politically stable environment for mining operations (EU member
- Located near the
historic mining town of Roznava in south eastern Slovakia
- GTG has a 60%
interest, and its Slovak partners PIDECO hold 40%.
- CTG can earn an
additional 10% through the expenditure of US$ 2M over two years
- CTG can increase
its interest in the project to purchase the remaining JV share of
the project for $2MM for each additional 10% tranche
- Excellent existing
infrastructure, including rail, power and road access
About Investec Bank
Investec is an international specialist banking group that provides a
diverse range of financial products and services to a niche client base
in three principal markets, the United Kingdom, South Africa and
Australia as well as certain other countries. The group was established
in 1974 and currently has approximately 6000 employees.
Investec focuses on delivering distinctive profitable solutions for
its clients in five core areas of activity namely, Private Client
Activities, Capital Markets, Investment Banking, Asset Management and Property
In July 2002 the Investec group implemented a dual listed company
structure with listings on the London and Johannesburg Stock Exchanges.
Management and staff own approximately 20% of the equity share capital of
About Global Minerals
Global Minerals Ltd. (CTG: TSX.V) focuses on the development of
advanced-stage, highly profitable, mid-size ore bodies while continuing
to explore for world-class gold and silver deposits in geopolitically
stable countries. The experienced management team has accumulated several
exploration projects, operates one producing mine and is focusing its
efforts on the world-class Strieborn� silver vein in Slovakia. Please
visit our website www.globalminerals.com
For further information: do not hesitate to contact Mr. Derek
Sutherland, Head of Investor Relations, at (416) 907-6287 or email at firstname.lastname@example.org.
Global Minerals Ltd.
"George W. Heard"
George W. Heard
President and CEO
The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy of this news release.