Business
US$5 million additional fundi
US$5 million additional fundi.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n RNS Number : 1359U Roxi Petroleum Plc 18 June 2009 \n \nRoxi Petroleum plc \n('Roxi or the 'Company')\n\nUS$5 million additional funding from Arawak\n\n\n\n\nUS$5 million convertible loan from Arawak a subsidiary of the Vitol group \n\n\n\n\n\nUS$3 million is earmarked to bring Galaz into production\n\n\n\n\n\nUS$2 million will be available for the for general administrative purposes\n\n\n\n\n\nWhen taken in conjunction with the recently announced US$24 million GEM facility Roxi has in the past month put in place facilities to provide up to an additional US$29 million of funding\n\n\n\nRoxi Petroleum plc ('Roxi' or 'the Company'), the Kazakhstan based oil exploration and development company is pleased to announce additional funding from a leading industry participant. \n\nUS$5 million Convertible loan\n\nRoxi is pleased to announce that the Company has entered into an agreement with Arawak Energy Limited ('Arawak'), a subsidiary of the Vitol group, which is one of the world's largest oil traders, to provide a US$5 million loan to Roxi, principally to assist the Company to bring Roxi's Galaz assets into full production.\n\nThe loan will carry interest at 7 per cent above LIBOR and is repayable in 12 months at the Company's option. In the event it is not then repaid the loan will, based on today's exchange rate, convert into approximately 31 million Roxi shares at 10p per share.\n\nApproximately US$3 million will be used to develop the Galaz assets to bring them into full production. Approximately US$2 million will be available for general administrative purposes.\n\nIn consideration for entering into the loan agreement Roxi will issue Arawak warrants to subscribe for up to 18 million Roxi shares, exercisable before 31 March 2010 at a price of 10p per share, or before 30 September 2010 at 15p per share, or before 31 March 2011 at 20p per share. \n\nThe board believes that the proposed US$5 million convertible loan, taken together with funding available under the recently announced US$24 million GEM facility, will provide a far greater level of financial st...