PENINSULAR
GOLD LIMITED
(the “Company”)
AIM:
PGL
Convertible
Loan Note Issue
On 24 July 2007 the Company
announced that it had entered into an agreement with Amstel Securities N.V
(“Amstel”) pursuant to which Amstel agreed to place up to a total
of US$ 20 million of Convertible Loan Notes (“the Notes”) on behalf
of the Company with a major US investment bank.
The initial issue on 26 July 2007
comprised US$ 8 million of Notes (“Initial Issue”).
The issue of a second tranche of
Notes comprising US$ 4.5 million was announced on 17 October 2007.
The Company is pleased to report
that, having satisfied certain conditions precedent and financial milestones,
relating to the construction of the Carbon in Leach plant at Raub, it has today
issued a further US$3.5 million of Notes, taking the aggregate amount now
issued to US$16.0 million.
The general
terms of the issue of the Notes are summarised as
follows:
1.
The Notes will convert
into new ordinary shares of no par value in the capital of the Company at a
price of 30.0 pence per share.
2.
The issue price of the
Notes will be 100 per cent. of their principal amount.
3.
The Notes are secured
by share pledges over subsidiaries and certain other charges and guarantees
from subsidiaries.
4.
A coupon of 10.5 per
cent. per annum net payable semi-annually.
5.
Maturity is 5 years
from the date of the Initial Issue.
6.
There are certain
anti-dilution provisions.
7.
On or after the third
anniversary of the date of the Initial Issue, the Company has the right to
redeem the Notes at a redemption price as well as the right to require the
holder(s) of the Notes to convert the Notes into new ordinary shares in the
capital of the Company in the event that the Company's share price is above the
conversion price at that time by a certain level.
21 December 2007
-End-
Sarah Alexander
Conduit PR
76 Cannon
St
London EC4N 6AE
Dir: + 44 (0) 20 7429 6608
Office: + 44 (0) 20 7429 6666
Mob: ++ 44 (0) 7810 44 5238
Fax: + 44 (0) 20 7429 6699
www.conduitpr.com
It is understood that the Consultant is not registered as either a Registered Representative
nor Broker-Dealer nor Advisor under the Financial Services and Markets Act
2000, and the services to be performed by the Consultant shall not include the
offering or sale of any securities. As part of the Consultant duties, the
Consultant may discuss or distribute factual information on behalf of the
company and they shall not make any recommendation with respect to purchase or
sale of any securities of the Company.
