Business
£13 million Convertible Facil
£13 million Convertible Facil.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n RNS Number : 1252W Metals Exploration PLC 12 November 2010 \n \n\n \nMETALS EXPLORATION plc\n(\"Metals Exploration\" or the \"Company\")\n \n£13 million Convertible Facility Agreement\n \nOn 12 November 2010, Metals Exploration and Shelfco 724 Limited (\"Shelfco\"), a related company of Solomon Capital Limited (\"Solomon\"), entered into a £13 million Convertible Facility Agreement (\"Facility\"). Under the terms of the Facility, Shelfco has agreed to make available, subject to the terms therein, a convertible credit facility for up to £13,000,000. Key terms of the Facility are as follows:\n· £3,000,000 is available at first drawdown of which £2,000,000 will be applied to the discharge of the fully drawn £2,000,000 On Demand Facility previously provided by Solomon. The On Demand Facility will then be cancelled;\n· The balance of the facility can be drawn down in monthly tranches;\n· The Facility is for a term of 364 days; \n· Interest on the amounts drawn will accrue at 10% per annum payable one month in arrears from the date of the drawdown. The default interest rate is 13% per annum;\n· At any time after 8 December 2010 and during the term of the Facility, Shelfco at its absolute discretion may convert all or part of the drawn amount plus any accrued interest into fully paid ordinary shares of the Company at a conversion price of 13p per share;\n· To the extent that any amount is converted, that part of the Facility is treated as repaid;\n· An arrangement fee of 1% is payable by the Company on the first £2,000,000 drawn and thereafter at a rate of 2% on the drawdown of each tranche;\n· Any sum due to Shelfco and not either repaid to Shelfco or converted by Shelfco prior to the termination date shall be repaid by the Company on the termination date. If all or part of the utilised but unconverted Facility is not repaid when due, the Company will pay to Shelfco a fee of 3% on that sum;\n· An exit fee of 1% is payable on the entire sum drawn except to the extent that some or all of that sum has been converted into fully paid ordinary shares of the Company; \n· &nb...