Business
Provision of A$5 million to M
Provision of A$5 million to M.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n RNS Number : 9096C Anglo Pacific Group PLC 23 November 2009 \n \n\n\nNews Release\n\n23rd November 2009\n\nAnglo Pacific Group plc\nProvision of A$5 million to Mundo Minerals by a convertible debenture \n\nAnglo Pacific Group plc (\"the Company\") announces that it has agreed, subject to contract and due diligence, to provide funding of A$5 million to Mundo Minerals Limited (\"Mundo\") (ASX: MUN) in the form of a convertible debenture. This will either be convertible into a 3% net smelter royalty (\"NSR\") on the production from the Torrecillas project in Peru, or be convertible into equity in Mundo at a conversion price of A$0.32, or be repayable.\n\nThe funds will be used to increase production at Mundo's Engenho Gold Mine in Brazil to a targeted level of 48,000oz per annum by 2011 and underpin additional project assessment work and a final Feasibility Study on the development of its Torrecillas Gold Project in Peru\n\nUnder the terms of the agreement:\n\n\n\nThe convertible debenture will expire on 31st December 2012 and will not be repayable until then.\n\n\nThe Company will have the option to convert into the NSR or Mundo equity at any time prior to the expiry date.\n\n\nThe Convertible will not be repayable if at any time prior to the expiry date the share price of Mundo trades at a level in excess of A$0.75 per share for a continuous period of not less than 3 months.\n\n\nInterest will be payable on the debenture at a rate of 8.5% per annum until conversion or repayment.\n\n\nThe NSR will apply to all production from the Torrecillas project area.\n\n\nThe debenture and subsequent NSR (if converted) will be secured against the Engenho mill facilities and will be noted on all relevant mining titles in accordance with relevant Brazilian and Peruvian law.\n\n\n\nUpon signing of this agreement, an amount of up to A$2 million will be provided as an advance against the debenture on the following terms:\n\n\n\nInterest will be applied at an annualised rate of 8.5% per annum.\n\n\nMundo will pay to the Company an arra...