Business
Mezzanine Debt Facility
Mezzanine Debt Facility.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 2627S Metals Exploration PLC 29 September 2017 \n\n29 September 2017\n \nMETALS EXPLORATION PLC\n \n \nMetals Exploration plc (AIM: MTL) (\"Metals Exploration\" or the \"Company\"), the natural resources exploration and development company with assets in the Pacific Rim region.\n \nUS $21 million Mezzanine Debt Facility Secured Subject to Final Documentation\n \nThe Company is pleased to announce it has agreed a US $21 million mezzanine debt facility with its two major shareholders, Runruno Holdings Limited and MTL (Luxembourg) Sarl subject to final documentation. Proceeds from the facility will be used to repay two short term loans received from the same shareholders in May and June 2017 totalling US $12 million, with the balance being utilised to facilitate a capital and interest payment to the Group's senior lenders, due on 29 September 2017.\n \nThe two shareholders will participate throughout the facility on a pro-rata basis to their current shareholding in Metals Exploration plc.\n \nThe main commercial terms of the facility are summarised as follows:\n· Headline interest rate is 8% plus 3 months' US LIBOR;\n· Capitalised interest attracts an additional 4% margin. Interest may be capitalised or the first twelve months of the facility at the election of the Company;\n· The loan is repayable within 60 months of being drawn down;\n· A Production Fee is payable over a 60 month period in quarterly instalments equivalent to 1.3% of the gross revenue from gold sales of FCF Minerals Corporation for a period of 60 months from first Drawdown, where the minimum quarterly fee payable is equal to $250,000 and the maximum quarterly fee is capped at US $500,000;\n· 100 million warrants in total are exercisable by the shareholders before the end of the sixth anniversary of the signing of the facility agreement;\n· 75 million warrants have a strike price of 5.5 pence and 25 million have a strike price of 7.0 pence\n \nThere remains one outstanding document which is required to be signed by the senior lenders (the HongKong & Shanghai Banking Corporation Limited and BNP Paribas) before the shareholders are able to transfer the funds to Metals Exploration plc. As a cons...