TIDMIGD
RNS Number : 3026T
IncaGold Plc
03 June 2009
3 June 2009
IncaGold plc (the "Company")
Related Party Transaction
The Company announces that, further to the secured loan agreement with Fox
Capital Limited ("Fox") announced on 30 May 2008, it has entered into an Amended
Secured Loan Agreement with Fox whereby Fox has extended the facility made
available to the Company to a total working capital facility of up to GBP100,000
to secure the Company's cash flow position in the near term.
The Company has drawn down a total of GBP72,192.77, excluding interest and fees
under the Amended Secured Loan Agreement.
The principal terms are that, in addition to paying interest at a rate of ten
percent above the base rate of Lloyds Bank Offshore Limited, the Company shall
pay a fee to Fox of 25% of the maximum amount drawn down during the Loan Period
which shall be paid to Fox on the Repayment Date. The Repayment Date is defined
as the earlier of seven years from today's date or either when the loan is
repaid in full or one month after a written repayment demand is received by the
Company from Fox.
As announced on 30 May 2008, the Company entered into a debenture agreement
whereby any amounts owed to Fox that are outstanding and unpaid are secured on
the Company's fixed and floating assets.
On the Repayment Date, Fox may elect to subscribe for new ordinary shares in the
Company, converting the total amount of the loan outstanding together with any
accrued interest and the fee described above at a subscription price equivalent
to the mid market price on the close of business on the trading day that
immediately precedes the date on which the funds were drawn down.
Under AIM Rule 13, the Secured Loan Agreement constitutes a Related Party
Transaction as Fox is a related party as defined in the AIM Rules for Companies
because it is a substantial shareholder, and two of its directors, Roy Tilleard
and Justin Martin, are directors of the Company. Jonathan Ely and Mike Evans,
who are independent directors for these purposes, consider, having consulted
with Zeus Capital Limited, the Company's nominated adviser, that the terms of
the Amended Secured Loan Agreement are fair and reasonable insofar as the
Company's shareholders are concerned.
The Directors are continuing to progress the application which has been made to
the FSA to become an authorised insurance broker. Once authorised, the Directors
expect, shortly thereafter, to launch the Company's cosmetic surgery insurance
policy business as outlined in the Circular to shareholders dated 3 October
2008.
Contact:
IncaGold plc
Justin Martin, Director
Tel: +44(0)1624 820040
Website: www.incagoldplc.com
Zeus Capital Limited
Ross Andrews
Tom Rowley
Tel: +44(0)161 8311512
Website: www.zeuscapital.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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