Business
Agmt financing of Ghurayyah
Agmt financing of Ghurayyah.
About this update from Tertiary Minerals Plc
[{"type":"text","content":"\n Tertiary Minerals PLC\n07 December 2005\n\n\n\n TERTIARY MINERALS PLC\n \n SAUDI COMPANIES BACK TERTIARY WITH FUNDING PACKAGE\n \n FOR GHURAYYAH FEASIBILITY STUDIES\n\n\n • US$7m Financing Includes Placing of 5 Million Tertiary Shares At 100%\n Premium\n • Tertiary To Retain 50% of World's Largest Tantalum Project after\n Bankable Feasibility Study\n • Local Project Financing Environment May Minimise Equity Requirement On\n US$100m Project\n\nTertiary Minerals plc ('Tertiary' or 'the Company') is pleased to announce that\nit has signed a Preliminary Agreement with a consortium of Saudi Arabian\ninvestors ('the Consortium') that will provide a funding package of up to US$7\nmillion for the completion of Preliminary and Bankable feasibility studies for\nthe development of the Company's world-class Ghurayyah tantalum-niobium project\nin Saudi Arabia. Assuming successful completion of these studies a special\npurpose vehicle, funded and owned equally by Tertiary and the Consortium, will\nbe incorporated to develop the Ghurayyah deposit.\n\nThe Consortium comprises two of Saudi Arabia's leading family companies -\nA.H.Algosaibi & Bros. Co. and AlNahla Trading & Contracting Co. Both are\ndiversified industrial companies with a range of domestic and international\nbusiness interests. This joint venture is believed to be the first minerals\nbased joint venture to be established between Saudi and foreign companies under\nthe terms of the current Saudi Investment Code and the newly introduced Mining\nCode.\n\nUnder the Preliminary Agreement the Consortium will immediate subscribe £500,000\nfor 5,000,000 new ordinary shares in Tertiary Minerals plc at a price of 10\npence per share, representing a 100% premium over the current market price. The\nparties will then seek to implement a binding joint venture agreement based on\nthe terms of the Preliminary Agreement whereby the cost of the Preliminary\nFeasibility study, estimated at US$2,000,000 will be funded US$300,000 by\nTertiary, US$850,000 from the issue to the Consortium of zero-coupon convertible\nloan notes and a further US$850,000 direct contribution to the joint venture\nexpenses from the Consortium. The loan notes will be convertible to ordinary\nshares in Tertiary at any time prior to completion of the Preliminary\nFeasibility Study at a price equal to the highe...