BMR Group PLC $5.2m Project Construction&Trade Finance Facility (6099K)
September 23 2016 - 2:00AM
UK Regulatory
TIDMBMR
RNS Number : 6099K
BMR Group PLC
23 September 2016
23 September 2016
BMR Group PLC ("BMR" or the "Company")
US$5.2 million project construction and trade finance
facility
The Board is pleased, further to its announcement on 8 August
2016, to announce that on 22 September 2016 the Company and its
wholly owned subsidiary Enviro Mining Limited ("EML") entered into
the anticipated project construction and trade finance facility
(the "Facility") for up to US$5.2 million with African Compass
International Limited ("ACI"), a private South African group
engaged in mining, energy and agri-business.
The Facility provides that ACI will make available to EML upon
achievement of various milestones, through to commissioning of the
KABWE plant and proof of saleable product (the "Final Milestone"),
up to US$4.2 million for use in connection with the plant, and
materials processed, at Kabwe. In addition, the Facility provides
for the drawdown of US$1.0 million to satisfy the consideration
payable to exercise the option agreement with Bushbuck Resources
Limited for the acquisition of its Star Zinc Large Scale
Prospecting Licence 19653-HQ-LPL in Zambia, as announced on 16
August 2016.
Drawdowns under the Facility, which is interest free but
involves an arrangement fee of US$0.1 million, are to be re-paid
within 12 months of the Final Milestone, by set off against product
revenues due from ACI, or, at EML's election, in cash.
EML's obligations under the Facility have been guaranteed by
BMR.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Alex Borrelli, Chairman of BMR, commented:
"This facility represents a defining moment for the Company as
the financing has underpinned our planned cost of the Plant at
Kabwe.
We are pleased to have delivered this facility for the benefit
of our shareholders who have supported the management team in our
endeavours for processing the Kabwe tailings.
The facility also provides us with the funding necessary for
exercising the option agreement on the Star Zinc licence.
Our continuing progress on our schedule of works at Kabwe
remains in line for completing the plant construction for
commissioning in 2017."
Ends
For further information:
BMR Group PLC 020 7734 7282
Alex Borrelli, CEO and Chairman
WH Ireland Limited 020 7220 1666
NOMAD and Joint Broker
Chris Fielding, Head of Corporate Finance
Peterhouse Corporate Finance 020 7469 0930
Joint Broker
Lucy Williams/ Duncan Vasey/ Heena Karani
This information is provided by RNS
The company news service from the London Stock Exchange
END
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