Issue of US$10m - 10% p.a. Convertible Bond due...

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[{"type":"text","content":"\n \n \n Issue of US$10m - \n 10% p.a. Convertible Bond due 28 February 2021\n \n \n\n \n Goldbridges Gbl Res\n \n \n\n \n \n \n GoldBridges Global Resources Plc\n \n \n (\"GoldBridges\" or the \"Company\")\n \n \n Issue of US$10m - \n 10% p.a. Convertible Bond due 28 February 2021\n \n \n Summary:\n \n \n GoldBridges’ major shareholder, African Resources, has on 29 February \n 2016 subscribed for US$10m in convertible bonds due 28 February 2021 \n (the “Bonds”).\n \n \n \n Funds from the issue of the Bond will be used to develop the \n Sekisovskoye Underground Mine near Ust-Kamenogorsk, Kazakhstan;\n \n \n No underwriting fees have been incurred with this financing package;\n \n \n Visor Capital (UK) Ltd. acted as adviser.\n \n \n \n Convertible Bond Issue:\n \n \n GoldBridges is pleased to announce that on 29 February 2016 the Company \n issued US$10m in unsecured convertible bonds due 28 February 2021, with \n 100% of the Bonds being subscribed to by its major shareholder, African \n Resources. African Resources is a private entity indirectly owned by \n members of the Assaubayev Family.\n \n \n The Bonds carry a coupon of 10% per annum, payable semi-annually in \n arrears on 29 July and 28 February each year with the first payment due \n on 29 July 2016. Unless the Bonds are re-purchased and cancelled, \n redeemed or converted prior to the scheduled maturity date, they will be \n repaid on 28 February 2021 at their principal amount. The Bonds can be \n converted into Ordinary Shares of the Company at a price of 3 pence per \n share any time prior to maturity upon demand by the Bondholder (subject \n to the receipt of necessary corporate and governmental approvals).\n \n \n The Bonds constitute senior, unsubordinated, direct, unconditional and \n unsecured obligations of the Company and rank pari passu among \n themselves.\n \n \n Use of Proceeds:\n \n \n As already announced, GoldBridges has commenced construction of a \n haulage decline to access its deeper gold reserves. In order to complete \n the underground mine development, to increase the processing plant \n capacity to a run rate of 1 million tonnes per year and to produce \n 100,000 ounces of gold annually, the Company estimates that it will \n require US$20-30m in external funding for the next three years, assuming \n the gold price is between US$900-US...

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