African Minerals Ltd Financing Update (4628E)
February 10 2015 - 2:00AM
UK Regulatory
TIDMAMI
RNS Number : 4628E
African Minerals Ltd
10 February 2015
10 February 2015
African Minerals Limited
("African Minerals", "AML", or the "Company")
Financing Update
African Minerals Limited, the developer, operator and 75% owner
of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone,
today provides a financing update in relation to the Company's
$400m convertible bond (the "Bond").
Under the terms of the Bond, the biannual coupon payment of $17m
is due on 10 February 2015. The Company advises it has insufficient
funds to meet this payment, and it is unlikely that such a payment
will be made in the near future.
Negotiations continue regarding a long term funding solution
with Shandong Iron and Steel Group ("SISG"), AML's partner and 25%
owner of the Project. The Company also continues to evaluate
potential funding solutions with other parties, including but not
limited to a partial sale of AML's stake in the Project. Reaching
that outcome remains AML's utmost priority and while the Board
continues to make every effort to advance these discussions, there
can be no certainty that agreement will be achieved.
In the event that a funding solution is successfully reached, it
is highly likely that the outcome would leave little or no value
for AML's shareholders, due to significant balances owed to trade
creditors before the Project went into care and maintenance, as
well as existing bank debt amounting to $276m and the $400m
convertible bond, all of which sit ahead of AML's shareholders in
the capital structure. Furthermore, SISG has made a number of
claims against the Project which further diminish its value.
AML's ordinary shares will remain suspended until the
fundamental uncertainty regarding the Company's financial position
is removed. The Project remains under care and maintenance.
AML will continue to provide updates as negotiations
progress.
Contacts:
African Minerals Limited
+44 20 3435 7600
Matthew Hird / Francis O'Neill
Tavistock
+44 20 7920 3150
Jos Simson / Nuala Gallagher / Mike Bartlett
Jefferies
+44 20 7029 8000
Nick Adams / Alex Collins
About African Minerals
African Minerals operates the Tonkolili Iron Ore Project (the
"Project") in Sierra Leone, with a JORC compliant resource of
12.8Bnt. The Project, which currently has a 60+ year mine-life, is
being developed in a number of staged expansions. In 2013, African
Minerals completed sales of 12.1Mt to its customers.
The Company has also developed significant port and rail
infrastructure to support the operation of the Project, via its
subsidiary African Rail and Port Services (SL) Limited ("ARPS"), in
which the Government of Sierra Leone ("GoSL") has a 10% free
carried interest.
The Project companies are currently owned 75% by AML, and 25% by
Shandong Iron and Steel Group ("SISG"), except for ARPS, which is
currently owned 75% by AML and 25% by SISG, with the GoSL having
the right to a 10% free carried interest from AML.
www.african-minerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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