Goldbridges Gbl Res Issue of US$10m - 10% p.a. Convertible Bond due 28 February 2021
February 29 2016 - 7:30AM
UK Regulatory
TIDMGBGR
GoldBridges Global Resources Plc
("GoldBridges" or the "Company")
Issue of US$10m- 10% p.a. Convertible Bond due 28 February
2021
Summary:
GoldBridges' major shareholder, African Resources, has on 29
February 2016 subscribed for US$10m in convertible bonds due 28
February 2021 (the "Bonds").
-- Funds from the issue of the Bond will be used to develop the
Sekisovskoye Underground Mine near Ust-Kamenogorsk,
Kazakhstan;
-- No underwriting fees have been incurred with this financing package;
-- Visor Capital (UK) Ltd. acted as adviser.
Convertible Bond Issue:
GoldBridges is pleased to announce that on 29 February 2016 the
Company issued US$10m in unsecured convertible bonds due 28
February 2021, with 100% of the Bonds being subscribed to by its
major shareholder, African Resources. African Resources is a
private entity indirectly owned by members of the Assaubayev
Family.
The Bonds carry a coupon of 10% per annum, payable semi-annually
in arrears on 29 July and 28 February each year with the first
payment due on 29 July 2016. Unless the Bonds are re-purchased and
cancelled, redeemed or converted prior to the scheduled maturity
date, they will be repaid on 28 February 2021 at their principal
amount. The Bonds can be converted into Ordinary Shares of the
Company at a price of 3 pence per share any time prior to maturity
upon demand by the Bondholder (subject to the receipt of necessary
corporate and governmental approvals).
The Bonds constitute senior, unsubordinated, direct,
unconditional and unsecured obligations of the Company and rank
pari passu among themselves.
Use of Proceeds:
As already announced, GoldBridges has commenced construction of
a haulage decline to access its deeper gold reserves. In order to
complete the underground mine development, to increase the
processing plant capacity to a run rate of 1 million tonnes per
year and to produce 100,000 ounces of gold annually, the Company
estimates that it will require US$20-30m in external funding for
the next three years, assuming the gold price is between
US$900-US$1,100/oz.
Total capex for the expansion is estimated at US$42m, and the
additional capital required to complete the underground development
plans should be generated from operational cashflows. The funds
raised with African Resources are sufficient for the Company to
complete its minimum 2016 capex plan.
Aidar Assaubayev, CEO of GoldBridges, commented:
"African Resources has been a loyal and supportive shareholder
in GoldBridges for the past three years and, by subscribing for
US$10m in convertible bonds, has demonstrated its continued belief
in the GoldBridges business. We look forward to completing the
expansion of the underground mine at Sekisovskoye and to increasing
our annual gold production to 100,000oz."
Further Information:
For further information please contact:
GoldBridges Global Resources Plc
Louise Wrathall
+44 (0) 207 932 2456
Cantor Fitzgerald Europe
Stewart Dickson
+44 (0) 207 894 7000
Information on the Company
GoldBridges is a gold mining, exploration and development group
based in Kazakhstan. Whilst the Company was initially established
to exclusively develop and operate the Sekisovskoye gold and silver
mine in the East Kazakhstan Region, it is now actively targeting
additional gold mining opportunities in Kazakhstan. This includes
the adjacent prospective Karasuyskoye Ore Fields on which
GoldBridges was recently awarded the tender to perform further
confirmatory testing in order to gain the sub-soil user
licence.
The Company holds a 100 per cent shareholding in DTOO
Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil
use contract in relation to the Sekisovskoye deposit, covering a
total area of 0.855km². The subsoil use contract for Sekisovskoye
is valid until 2020 and the Company currently intends to seek to
extend the contract in accordance with its terms.
The Company also holds a 100 per cent shareholding in DTOO Altai
Ken-Bayitu LLP which owns and operates the processing plant at the
Sekisovskoye deposit. The Sekisovskoye deposit is located at the
village of Sekisovka, approximately 40km north of the town of
Ust-Kamenogorsk, the capital city of the East Kazakhstan Region.
The current operation is focused on mining two open pits where the
near-vertical deposits extend to the surface. The open pits are
nearing their end of life in 2015, and the Company is developing an
underground extension to exploit the deposits to depth. The Company
intends that the Sekisovskoye deposit will become a
selective-mining underground operation.
As at 31 May 2014, the Company's proven and probable reserves
consisted of 2.3Moz of gold and 3.0Moz of silver, and the Company's
measured, indicated and inferred resources consisted of 5.1Moz of
gold and 3.5Moz of silver, in each case as classified in accordance
with JORC.
In the year ended 31 December 2014, the Company's consolidated
revenue was US$35.2 million and its EBITDA was US$5.3 million.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160229005901/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
February 29, 2016 07:30 ET (12:30 GMT)
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