Business
Loan of up to $30.0m & Palm Oil Mill Update
Loan of up to $30.0m & Palm Oil Mill Update.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 3727T Equatorial Palm Oil plc 12 October 2017 \n\n12 October 2017\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\") \n \n \nLoan of up to $30.0m Secured for Joint Venture Company\n \nPalm Oil Mill Update\n \n \n \nEquatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa announces today its 50 per cent. owned joint venture company, Liberian Palm Developments Limited (\"LPD\"), has entered into a loan agreement of up to $30.0m (\"Loan Agreement\") with KLK Agro Plantations Pte Ltd (\"KLK Agro\"), a wholly owned subsidiary of Kuala Lumpur Kepong Berhad (\"KLK\"), for the operations and funding for LPD.\n \nThe Loan will be used to continue to develop the operations of LPD and finalise the construction of the first stage of the new 60 metric tonne (\"MT\") palm oil mill being built on Palm Bay estate, as announced in April 2016.\n \nThe key terms of the loan are as follows:\n· Amount - up to $30.0m which is unsecured\n· Term - 5 years from the date of the Loan Agreement, being 11 October 2017\n· Interest - 3-months USD LIBOR + 5 per cent per annum\n· Repayment - Loan principal (together with all accrued Interest due) on expiry of the Term \n \nThe Loan is in addition to, and on predominantly the same terms as, the loans of US$20.5m and US$30.0m provided by KLK Agro, announced on 27 January 2015 and 5 September 2016 respectively (the \"Existing Loans\"), save for the date of maturity being 11 October 2022. The Existing Loans, which have now been fully drawn down and remain outstanding, fall due on 25 January 2020. The Loan can be drawn down by LPD in line with its operational funding requirements and subject to the consent of the KLK Agro.\n \nPalm Oil Mill Update\nThe construction of the 60 metric tonnes per hour (\"mt/hr\") palm oil mill (\"POM\"...