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FOR IMMEDIATE RELEASE
Global Minerals Completes First
Drawdown in
$2 Million Loan Financing
Funds will be used for the development of the Streiborná Vein Deposit
Vancouver, British Columbia, August 15, 2008: Global Minerals Ltd.
(TSX: CTG)
(FRANKFURT: DFP) (“Global Minerals” or the “Company”) is pleased to
announce that it has closed and completed the partial drawdown (US$750,000)
of the US$2,000,000 convertible loan facility with Investec Bank (UK)
Limited (“Investec”). The Company expects to drawdown the balance of
US$1,250,000 under the loan facility upon registration in Slovakia of
documents related to the pledge to Investec by the Company of its 60%
equity interest in the Company’s Slovakian subsidiary, Global Minerals
Slovakia s.r.o.
The loan will be used by Global Minerals primarily for expenditures
related to its Strieborná polymetallic project in Slovakia. The proceeds
will allow the Company to part finance the pre-feasibility study and
permitting related to the Streiborná project, and to provide working
capital.
The loan will bear interest at the rate of USD Libor plus 10% per
annum, with interest payable quarterly, in arrears. The loan must be repaid
in full upon the earlier of (i) August 15, 2009; (ii) the date of the
initial drawdown under a senior project finance facility proposed to be
arranged by Investec for Global Minerals or its subsidiary; (iii) the
closing date of any capital raising by Global Minerals in excess of
US$2,000,000 in any single raising or in aggregate over a period of 6
months, be it by issue of stock or debt.
Pursuant to transferable share purchase warrants issued to Investec
on closing, the warrantholder will have the right to purchase up to
13,477,334 common shares of Global Minerals at a price of CDN$0.15 per
share until August 15, 2009. Investec as Warrantholder may also set off the
purchase price for the warrant shares against all or part of the
outstanding principal under the promissory note. If the Company’s common
shares trade at a price 180%, 200% or 220% greater than the exercise price
of the 2 warrants for 20 consecutive trading days, Global Minerals will have
the option to force exercise of the 25%, 50% and 25% of the warrants,
respectively.
Investec received an arranging fee of 5% of the principal amount of
the loan 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 promissory note for the first drawdown.
The Company has granted Investec the first right of refusal to
arrange the Company’s future funding needs for the Streiborná project.
In accordance with the early warning requirements, applicable
Canadian securities laws and prior releases and filings by Global Minerals,
Investec is required to report certain information respecting securities
held by in the capital of Global Minerals.
The 13,477,334 Warrants issued to Investec represent approximately
12.8% of the outstanding common shares of Global Minerals (assuming
exercise of the warrants).
Immediately prior to the completion of the transactions contemplated
herein, Investec did not own, directly or indirectly, any securities of
Global Minerals. The securities were acquired for investment purposes.
Investec will evaluate its investment in Global
Minerals from time to time and may, based on such evaluation of
market conditions and other circumstances, increase or decrease its
securityholdings in Global Minerals as circumstances require.
Investec is located at 2 Gresham Street, London, EC2V 7QP, United
Kingdom. For further information and to obtain a copy of the early warning
report filed under applicable Canadian provincial securities legislation in
connection with the transactions hereunder, please go to the Global
Minerals profile on the SEDAR website www.sedar.com or contact Investec at
+44 20 7597 4000.
About Investec Bank
Investec Commodities and Resource Finance (“Investec Resources”) is an
industry focused specialist finance and investment banking team that forms
part of the Capital
Markets division of the Investec Group. As an international team with
representation in Johannesburg, London, Perth and Sydney, Investec
Resources' activities span the debtequity spectrum, focusing on Precious
and Base Metals, Minerals, Oil and Gas and
Emerging and Developed Markets.
The teams provide financing to junior and mid-tier mining companies that
develop, expand or acquire projects in emerging and developed markets
across the globe. They are also able to advise, implement and execute
hedging and structured derivative solutions in the precious and base metal
markets. To support its role in this arena, Investec
Resources is a Category 2 clearing member of the London Metal Exchange,
and member of the London Bullion Market Association and London Platinum and
Palladium Market. It also invests in mining projects at a late exploration
or pre-feasibility study 3 stage. These investments can be taken on a
proprietary basis or through the Blackfish-Investec Resources Special
Situations Fund.
Investec Resources has an established competitive advantage as a result
of their significant technical skills, major transactional track record and
their ability to provide total solutions. Investec Resources' partnerships
with other teams in the Investec group result in an entrepreneurial
approach to strategy, creation of unique opportunities, creativity and
rapid closure of transactions.
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 6300 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 Activities.
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 15% of the equity share capital of
the group.
At 31 March 2008, total shareholders' equity was £2.2 billion, third
party assets under management were £54.2 billion and core loans and
advances were £12.8 billion. The combined group's current market
capitalisation is approximately £2.4 billion.
About Global Minerals Ltd.
Global Minerals Ltd. (CTG: TSX.V) (FRANKFURT: DFP) 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 Strieborná 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 sutherland_derek@yahoo.com.
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.
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