Business
Issue of Loan Notes
Issue of Loan Notes.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n16 February 2006\n\n\nFor immediate release 16 February 2006\n\n\n\n\n\n AURUM MINING PLC\n\n ('Aurum' or 'the Company')\n\n Issue of Secured Convertible Loan Notes\n\nAurum Mining plc (AIM: AUR), the company formed to acquire gold and other\nmineral extraction projects in the Former Soviet Union (FSU), today announces\nthe issue of £1,000,000 secured convertible loan notes ('Loan Notes') together\nwith warrants to subscribe for up to 1,000,000 Ordinary Shares in the Company.\nThis issue will provide the Company with the necessary working capital to\ncontinue to develop its Andash gold and copper project in the Kyrgyz Republic\n(the 'Andash Project').\n\nLoan Notes with a value of £1,000,000 were issued for cash at par (being £1 per\nLoan Note) on 15 February 2006 (the 'Commencement Date'). The Loan Notes, which\nare transferable (in whole or in part), may be redeemed (in whole or in part) at\npar at any time after the first anniversary of the Commencement Date and prior\nto the third anniversary of the Commencement Date (the 'Repayment Date').\n\nThe Loan Notes are secured on the Group's interest in the Andash Project.\n\nInterest is payable on the Loan Notes, at the interest rate from the\nCommencement Date to the earlier of the date of redemption or the date of\nconversion. Interest is charged at 11 per cent until the first anniversary of\nthe Commencement Date and thereafter at 10 per cent. Interest accrues from day\nto day on the aggregate principal amount of the Loan Notes outstanding at that\ntime and all interest accruing after the Commencement Date is payable to the\nLoan Noteholders with effect from the first anniversary of the Commencement Date\nby quarterly payments in arrears until conversion or, if earlier, when the Loan\nNotes are repaid.\n\nIf at any time prior to the Repayment Date the Company completes a raising of\nfurther funds by way of an issue of new Ordinary Shares or by way of convertible\ndebt ('Fundraising') at less than 35p per share (or, where such Fundraising is\nstructured by way of convertible debt, where conversion rights may be exercised\nat less than 35p per share), Loan Noteholders shall have the right to redeem\ntheir Loan Notes (in whole or in part) at par, together with interest accrued up\nto and including the date of redemption.\n\nThe Loan Notes are convertible at...