Business
Kenmare Resources : Conditional US$100 million ...
Kenmare Resources : Conditional US$100 million ....
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Kenmare Resources : Conditional US$100 million subscription agreement as part of a proposed capital restructuringKenmare Resources plc (\"Kenmare\" or \"the Company\") 28 April, 2016 Conditional US$100 million subscription agreement as part of a proposed capital restructuringKenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine (the \"Mine\" or \"Moma\") in northern Mozambique, is pleased to advise that it has entered into a conditional subscription and relationship agreement with King Ally Holdings Limited (\"King Ally\"), a chemicals trading company incorporated in the British Virgin Islands, in respect of a proposed investment by King Ally in Kenmare. This proposed investment is in respect of US$100 million and is on the basis that King Ally would hold not more than 29.9% of the enlarged issued share capital of the Company following the completion of a capital restructuring, as described below.Discussions with Kenmare's lenders in relation to a deleveraging plan (originally required to have been agreed with lenders by 31 January, 2016) are continuing, and the lenders continue to work with Kenmare on satisfaction of the pre-conditions necessary for the implementation of such a deleveraging plan. As currently envisaged, the deleveraging plan entails a capital restructuring by, inter alia, an equity fundraising of not less than US$275 million, of which a significant portion would be used to reduce debt and the balance would be available to the Company for working capital purposes. The investment by King Ally would form part of this US$275 million equity fundraising, together with the proposed US$100 million equity investment by SGRF, a sovereign wealth fund of the Sultanate of Oman, previously announced by the Company as having been approved in principle by SGRF and in respect of which discussions are continuing, and an investment of not less than $75 million which would be required to be raised from new and existing shareholders in the Company. As previously announced, it is intended that there will also be an opportunity for existing shareholders to subscribe in an open offer on the same terms as under the US$275m equity placing...