Leed Resources PLC Investment in High Mannor (6594S)
March 21 2016 - 3:00AM
UK Regulatory
TIDMLDP
RNS Number : 6594S
Leed Resources PLC
21 March 2016
21 March 2016
LEED RESOURCES PLC
("Leed" or "the Company")
Investment in High Mannor
Leed Resources plc, (AIM: LDP), the natural resource investing
company, announces that it has remitted A$250,000 to support the
working capital of High Mannor ("HM"), a company controlled by
Battalion International Limited ("Battalion"). Leed announced on 15
February 2016 that it had entered into a non-binding heads of terms
agreement, which included an option to acquire up to 100% of
Battalion. The loan will be secured against trade receivables and
stock held at the quarrying and processing site of HM.
HM has previously relied on alternative sources of working
capital finance to fund the gap between production and payment for
the blocks and panels. These sources of financing have now expired
and accordingly, Leed along with two other Battalion loan note
holders, have agreed to provide this short term working capital
facility, which will accrue interest at a rate of 12% per
annum.
During the course of our ongoing due diligence on HM, it has
recently been discovered that one senior member of HM staff has
been carrying out fraudulent activities which appear to have
significantly affected the profitability of HM's business over the
past few months. The management of HM are seeking to quantify the
quantum of the loss to the business and the individual concerned
has now been dismissed and the facts reported to the police in
Perth. Leed is in active discussions with the remaining HM
management to ensure stronger controls moving forward and to assess
the impact of these events on the current business of HM.
Leed is continuing with due diligence in connection with the
potential acquisition of Battalion and HM.
Further updates will be made as necessary.
For further information, please
contact:
Leed Resources plc
Ian Gibbs
Charles Zorab Tel: +44 203 405
4214
Nomad and Broker
SP Angel Corporate Finance LLP
Ewan Leggat/Laura Tel: +44 20 3470
Harrison 0470
This information is provided by RNS
The company news service from the London Stock Exchange
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