Frontier Resources International Proposed Settlement of Director Debt (6566R)
June 30 2015 - 6:21AM
UK Regulatory
TIDMFRI
RNS Number : 6566R
Frontier Resources International
30 June 2015
For immediate release
30 June 2015
Frontier Resources International Plc
("Frontier" or the "Company")
Proposed Settlement of Director Debt
The Directors, in their continuing support of the Group's
business needs, had previously agreed to continue the deferral of a
proportion of their remuneration until at least 1 January 2015, an
extension of three months from 1 October 2014 agreed at the time of
admission to AIM.
As previously announced in April, as at 28 February 2015, a
total of GBP395,557 was due by the Company to Mr Keyes (comprising
GBP257,540 deferred salary payments due under his service agreement
and GBP138,017 due under the Director's current account) and
GBP40,000 was due by the Company to Mrs Spurrier in respect of
accrued but unpaid remuneration. In aggregate the amount owed by
the Company to Mr Keyes and Mrs Spurrier amounted to GBP435,557
(the "Director Debt") at that time. The Company had agreed to
settle the Director Debt on completion of the subscription for new
Ordinary Shares by AGR Energy Limited No. II ("AGR").
Notwithstanding that the AGR subscription did not subsequently
proceed, Mr Keyes and Mrs Spurrier and the Company have agreed that
it would be in the Company's best interests for the Director Debt
to be settled on substantially the same terms, save that the cash
payment previously to be paid to Mr Keyes and Mrs Spurrier will be
deferred and the number of new Ordinary Shares to be issued will be
determined by using the issue price of the next fund raising by the
Company.
Accordingly, GBP54,444.63 of the Director Debt will be settled
at the next fund raising by the issue of new Ordinary Shares (at
the then funding issue price). In respect of the balance of the
Director Debt of GBP381,112.38, an amount of GBP108,889.25 will be
written-off immediately and the remaining balance of GBP272,223.13
will be paid only in the event that the Company completes a
farm-out of its interests in one or more of its projects which
involves the reimbursement to the Company of at least GBP435,556 of
historic exploration expenditure.
The proposed settlement is being treated as related party
transaction for the purposes of Rule 13 of the AIM Rules.
Accordingly the Independent Directors, being Neil Herbert and John
O'Donovan, having consulted with the Company's nominated adviser,
consider that the proposed settlement of the Director Debt is fair
and reasonable insofar as the Company's shareholders are concerned.
The Independent Directors have taken into account in particular the
quantum of the Director Debt being written-off immediately, the
amount being deferred until such time as the Company completes a
farm-out and that the new Ordinary Shares to be issued will be at a
price determined in the next public funding by the Company.
Enquiries:
Frontier Resources
International Plc Tel: +1 (281) 920
Jack Keyes, Chief Executive 0061
Officer Tel: +44 (0) 020
Neil Herbert, Chairman 3475 8108
Beaumont Cornish Limited Tel: +44 (0)20 7628
(Nomad) 3396
Michael Cornish
Roland Cornish
Beaufort Securities Tel: +44 (0)20 7382
Limited (Broker) 8300
Saif Janjua
A copy of this announcement is available from the Company's
website www.friplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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