Business
Increase in Polo Facility to £3.5 million
Increase in Polo Facility to £3.5 million.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7143B GCM Resources PLC 03 February 2020 \n\n3 February 2020\nGCM Resources plc\n(\"GCM\" or the \"Company\")\n \nIncrease in Polo Facility to £3.5 million\n \nGCM Resources plc (LON:GCM), an AIM quoted mining and energy company, is pleased to announce that it has agreed a £1.2 million increase to its existing loan facility of £2.3 million with Polo Resources Limited (AIM: POL) (\"Polo\") (the \"Polo Facility\"). \n \nPrior to this amendment, the Polo Facility allowed the Company to borrow up to £2.3 million, to be repaid within 90 days upon request and attracting an interest rate of 12% per annum. As set out in the Company's Annual Report and Accounts for the year ended 30 June 2019, the existing Polo Facility had been fully drawn down. The revised terms provide for an increase in the Polo Facility amount by £1.2 million (up to an aggregate of £3.5 million), which can be drawn down by the Company in equal quarterly instalments of £300,000. As set out in the Company's announcement, of 30 November 2018, Polo will have the right to convert the outstanding loan balance and accrued interest to new ordinary shares of 10p each in the Company's capital (\"Ordinary Shares\") at a price of 11p per share, within 14 days upon request. Any issue of new Ordinary Shares to the Polo is conditional upon its interest, together with the interest of any parties with which it is in concert, remaining below 30% of the Company's issued share capital. All other principal terms of the Polo Facility remain unchanged.\n \nUse of funds\nAs announced on 13 January 2020, in-line with the Company's strategy, GCM has agreed the extension of the Memorandum of Understanding (\"MOU\") with Power Construction Corporation of China, Ltd and China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. for three months. On the same date, the Company announced the agreed the extension of the Joint Venture Agreement (\"JVA\") and definitive Engineering, Procurement and Construction Contract (\"EPC Contract\") with PowerChina, for a further 12 months, to 17 January 2021.\n \nThis increased debt funding will be used by the Company in progressing the strategic partnerships for the development of the proposed coal mine as well as for general working capital purposes.\n&n...