Metals Exploration confirms $130m equity and debt financing for Runruno gold-molybdenum project in Philippines
Metals Exploration (LON:MTL) has released details of a funding package it flagged just over two months ago which would finance the construction of the Runruno gold-molybdenum mine in the Philippines.
It has commitments from existing shareholders to raise $25 million in a share issue and has agreed a $105 million loan with Solomon Capital, a significant shareholder.
The company had signalled in late May that it was in the transition period before becoming a producer at its flagship project and would soon announce news on a debt funding package.
Metals Exploration will put the financing proposals to shareholders shortly, asking them to approve the debt funding and the issue of 124.07 million new shares at 13 pence each, a 53 per cent premium to yesterday’s closing price of 8.5 pence.
The placing shares have been subscribed for by Solomon Capital, Baker Steel Capital managers and Runruno Holdings Ltd, each either a substantial shareholder or part of a concert party that is a substantial shareholder.
The term loan facility will have a four-year term commencing at first utilisation and an annual interest rate of 20 percent. Repayment will be made by instalments matched to cashflow.
Management expects to draw down the facility in stages and that the repayment schedules will be satisfied within the four-year term.
The share issue will take Solomon Capital’s stake in Metals Exploration to 47.49 per cent from 46.46 per cent, Baker Steel’s will rise to 23.18 per cent from 22.6 per cent and RHL’s holding will rise to 18.31 percent from 17.90 per cent.
Executive chair Ian Holzberger said: “I am delighted that we have been able to procure this financing proposal, in the face of a difficult global outlook for both equity and debt funding.
“We now look forward to moving forward into the full construction phase on completion of documentation of the debt funding.” -by Andre Lamberti
http://www.proactiveinvestors.com/companies/news/32729/metals-exploration-confirms-us130 million-equity-and-debt-financing-for-runruno-gold-molybdenum-project-32729.html
Category: ResourceAsia
