Goldbridges Gbl Res Issue of US$2m 10% p.a. Convertible Notes due 1 May 2021
May 18 2016 - 5:56AM
UK Regulatory
TIDMGBGR
GoldBridges Global Resources Plc
("GoldBridges" or the "Company")
Issue of US$2m 10% p.a. Convertible Notes due 1 May 2021
Summary:
Three institutional investors have subscribed for US$2 million
in convertible loan notes due 1 May 2021 (the "Notes").
-- Funds from the issue of the Notes, together with earlier raised funds,
are sufficient for the Company to complete its 2016
underground
developments capex plan;
-- No underwriting fees have been incurred with this financing package;
-- Visor Capital (UK) Ltd. acted as adviser.
Convertible Note Issue:
GoldBridges is pleased to announce that on 18 May 2016 the
Company issued US$2m in unsecured convertible loan notes due 1 May
2021 to three institutional investors.
The Notes carry a coupon of 10% per annum, payable semi-annually
in arrears within 5 business days of 1 May and 1 November each year
with the first interest record date being 1 November 2016. Unless
the Notes are re-purchased and cancelled, redeemed or converted
prior to the scheduled maturity date, they will be repaid on 1 May
2021 at their principal amount. The Notes can be converted into
Ordinary Shares of the Company at a price of 2.15 pence per share
any time prior to maturity upon demand by the Noteholder (subject
to the receipt of necessary corporate and governmental
approvals).
The Notes constitute senior, unsubordinated, direct,
unconditional and unsecured obligations of the Company and rank
pari passu among themselves.
Use of Proceeds:
As already announced, GoldBridges is in the process of
developing its underground gold mine at Sekisovskoye. 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
estimated that it would require US$20-30m in external funding over
the next three years, assuming the gold price is between
US$900-US$1,100/oz. Any additional capital required to complete the
underground development plans should be generated from operational
cash flows. The funds raised recently through convertible loan
notes with African Resources and now with the announced convertible
loan note issued to three institutional investors totaling US$12m
are sufficient for the Company to complete its 2016 capex plan.
Aidar Assaubayev, CEO of GoldBridges, commented:
"We are pleased to have secured the support of the wider London
investor base in helping to finance the development and expansion
of our underground gold mine at Sekisovskoye. Since we announced
our estimated external capex funding requirements in February 2016,
we have to date raised funds totalling US$12m, meaning that our
funding requirements are now reduced to US$8-18m. Also, we are on
track to further reduce this figure in the near term. We are close
to the completion of the second decline, which will allow us to
expand our underground ore production run rate to 500,000 tonnes
per year, and we expect our gold output to start to increase in H2
2016."
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 company is in transition moving from open pit production to
underground development of the mine. The operations are expected to
be fully underground from H2 2016 onwards.
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 2015, the Company's consolidated
revenue was US$24million and its EBITDA was US$(2.3) million.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160518005598/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 18, 2016 05:56 ET (09:56 GMT)
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