Business
Loan Facility
Loan Facility.
About this update from Kazera Global Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n9 August 2024\nKazera Global plc\n(\"Kazera\" or \"the Company\")\n \nLoan Facility to fund Tectonic deal and bridge to cash flows from HMS operations\n \nKazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to announce that it has entered into a debt facility agreement (the \"Facility Agreement\") with each of its two largest shareholders, Richard Jennings and Tracarta Limited, pursuant to which they have agreed to provide the Company with unsecured term loan facilities of £150,000 and £350,000 respectively (the \"Facilities\"). The proceeds will be used to fund the cash element of the consideration payable to Tectonic Gold PLC under the terms of the agreement announced on 7 August 2024 and to provide additional working capital whilst the Company works to bring Deep Blue Minerals (Pty) Ltd (\"DBM\") and Whale Head Minerals (Pty) Ltd (\"WHM\") into production and cash generation.\n \nDennis Edmonds, Chief Executive Officer of Kazera Global plc commented: \"I am grateful to both Richard Jennings and Tracarta Limited for making these funds available to Kazera in order to make it possible to complete the WHM & DBM deals and give us what we anticipate being sufficient cash cover to take the Company into being cash generative. The Board feel very strongly that raising equity at anywhere near the current levels in the present market would not be in the interest of shareholders as it does not remotely reflect the expected immediate opportunity from our South African operations.\"\n \nDETAILS\nThe principal terms of the Facility Agreements are as follows:\n· Interest - Interest will accrue on the Facilities at a fixed rate of 12%, irrespective of early repayment on the Commitment Amount. The lenders may, at their sole discretion, elect to receive interest due in shares of the Company at a price of 1 \"one\" pence per share.\n· Term - The Facilities are repayable, together with all interest and fees that have accrued, on or before 30 October 202...