BANGALORE – Greenland-oriented Angel Mining Plc (ANGM.L), which conflicted with certain financial covenants, said his lender agreed to an additional bridge loan of $ 4,500,000 to provide an interest rate of 10 percent. The loan, which includes facility fee of $ 390,000, the total debt on the road to Angel Mining Holdings Sarl FBC to $ 21.0 million, plus interest and gives the company enough capital to move into full production.
“It’s an expensive thing to do, but we only really had no other sources of funding that we could use,” Chief Executive Nicholas Hall said.
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Expensive loan, but knew no other sources – CEO
* FBC additional bridge loan of $ 4.5 million to provide
* In discussions with third parties for the new $ 100 million credit facility
* Does producing more than 10,000 ounces of gold in a new year
* Shares of 13.5 pc (Adds CEO, analyst comments)
Angel Mining shares were down 13.5 percent at 5.63 pence at 1411 GMT on the London Stock Exchange.
The company also said it was in advanced talks with another party for a new $ 100,000,000 credit facility, which would have its own warrants.
“The 100 million U.S. dollars will enable us to repay our obligations and we will therefore no longer in default as soon as we can to get the agreement signed,” says Hall.
On May 24 Angel Mining had said it was in breach of financial contracts as a result of delays in full-scale gold
production and securing funding for her daughter.
Growth Equities analyst Thomas Jones of Research & Co said: “We’re all just waiting for the announcement for the long-term funding. The company’s future depends on the moment.”
The company, formerly known as Angus & Ross Plc said it would use the bridging loan to finance operations and for general working capital Nalunaq goldmine purposes, until he found a long-term financing solution.
It plans to use the expected third loan for the development of its Black Angel lead and zinc mine.
“The current bridge facility will enable them to increase production there (at Nalunaq), but Black Angel mine is definitely blue chip asset. So that’s what they are really focused on getting up and running,” said Jones analyst.
The company, which expects the carbon in pulp plant in Nalunaq operational in August, will see production above 10,000 ounces of gold in the current financial year.
Source: Reuters
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