Business
Convertible Loan Facility and Operational Update
Convertible Loan Facility and Operational Update.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \nRNS Number : 8217H KEFI Minerals plc 05 August 2019 \n\n5 August 2019\nKEFI Minerals plc\n(\"KEFI\" or the \"Company\")\nConvertible Loan Facility and Operational Update\n \nKEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce a restructuring of its working capital convertible loan facility (the \"Loan Facility\"), as announced on 28 November 2018, together with entering into a new working capital loan facility (the \"New Loan Facility\") in order to provide greater flexibility to the Company by removing the existing security charges over assets and extending the loan maturity dates.\nThe primary changes to the Loan Facility and details of the New Loan Facility are as follows:\n· £900,000 has been drawn to date from the existing £4 million Loan Facility, of which £450,000 has been repaid, leaving £3.1 million available to be drawn down. This remaining £3.1 million has been replaced in part by a new £1.5 million facility, the New Loan Facility;\n· The Loan Facility has been provided by a long-standing shareholder who holds under 3% of the Company;\n· The New Loan Facility can be drawn at the Company's discretion at a rate of £500,000 per month in £250,000 tranches and, if drawn, it is repayable in cash within two years;\n· Once any amount drawn under the New Loan Facility is repaid, the Company will be able to draw from the remaining £1.6 million of the Loan Facility, if required; and\n· The Loan Facility no longer has any security attached and is now provided on an unsecured basis. The New Loan Facility has been provided on an unsecured basis. This co-ordinated action has released all of KEFI's security encumbrances, other than minor cash security deposits, to allow maximum flexibility for structuring the financing of the Company's Tulu Kapi Gold Project (the \"Project\"), which potentially could include a larger initial Project equity investment by Ethiopian private sector investor, ANS Mining Share Company, the details of which will be concluded in due course.\n· The cost of these changes in security and related arrangements include £207,500 to be paid b...