TIDMKZG
RNS Number : 1162H
Kazera Global PLC
23 March 2020
23 March 2020
Kazera Global plc
Loan Facilities Agreement
Kazera Global plc ("Kazera Global" or "the Company"), the AIM
quoted investment company who, through its stake in African
Tantalum (Pty) Limited ("Aftan"), has an interest in the Tantalite
Valley Mine ("TVM " or the "Mine") in Namibia, is pleased to
announce that the Company has entered into definitive agreements
with a consortium of investors (the "Lenders") and existing
shareholders to raise, in aggregate, approximately GBP200,000
through short term unsecured loan facilities ("Loan
Facilities").
It is intended that the proceeds from the Loan Facilities will
be used for working capital purposes while the Company continues to
engage with potential funders for the development of the Mine.
Highlights of the Loan Facilities:
-- Total sum available under the Loan Facilities is GBP200,000;
-- The Loan Facilities will be disbursed in five separate
tranches: GBP40,000 on 29 May 2020, GBP40,000 on 30 June 2020,
GBP40,000 on 31 July 2020, GBP40,000 on 28 August 2020, GBP40,000
on 30 September 2020;
-- Participation of Kazera's Chairman, Giles Clarke and
Non-Executive Director, Nick Harrison, in the Loan Facilities;
-- The Company has issued a total of 66,666,666 warrants to the
Lenders to subscribe for ordinary shares in the Company at a
subscription price of 0.3p per share ("Subscription Price"), pro
rata to the amount of each loan (the "Warrants"). The repayment
date under the Loan Facilities is 29 January 2021 (the "Repayment
Date") at which time the Lenders may elect to receive the
outstanding balance due under the Loan Facilities in cash or by the
exercise of the Warrants at the Subscription Price; and
-- The Loan Facilities are subject to a fixed interest charge of
GBP20,000, being 10 per cent. of the total sum available under the
Loan Facilities, and the Lenders at their sole discretion may elect
to receive the interest due in shares at the Subscription Price or
in cash at the Repayment Date.
The Board believes that the draw down on the Loan Facilities
will provide the Company with sufficient cash resources to enable
it to operate until at least September 2020, by which time it hopes
to have secured a transaction with a strategic financing
partner.
Larry Johnson, Chief Executive Officer of Kazera Global,
said:
"We are delighted by the support shown by both existing
shareholders and the consortium of Lenders who have provided this
facility. With this support, we can continue to progress the
Company's operations in Namibia towards the securing of a
transaction with a strategic financing partner, of whom we continue
to be in discussions with.
"We look forward to updating shareholders as we continue to work
on our second phase of drilling activity following the first
successful phase."
Terms and Conditions of the Loan Facilities
The total sum available under the Loan Facilities is GBP200,000.
The Loan Facilities are unsecured, are repayable in full on 29
January 2021 and carry a fixed interest charge of GBP20,000, being
10 per cent. of the total sum available under the Loan Facilities.
The Lenders, at their sole discretion, may elect to receive the
interest due to them in shares of Kazera with a deemed price of
0.3p per share, such election to be made by Lenders at least 10
business days before the Repayment Date.
The Loan will be disbursed in five separate tranches: GBP40,000
on 29 May 2020, GBP40,000 on 30 June 2020, GBP40,000 on 31 July
2020, GBP40,000 on 29 August 2020, and GBP40,000 on 30 September
2020.
If the Company fails to make any payment due on the due date for
payment, interest on the unpaid amount shall accrue daily, from the
date of non-payment to the date of actual payment (both before and
after judgment), at an additional five per cent.
The Company has issued a total of 66,666,666 warrants to
subscribe for ordinary shares in the Company at a subscription
price of 0.3p per share to the Lenders, pro rata to the amount of
each loan (the "Warrants").
Related Party Transaction
Giles Clarke and Nick Harrison will contribute GBP25,000 each as
part of the Loan Facilities and each have been issued with
8,333,333 Warrants. Being directors of the Company, both are
related parties for the purposes of the AIM Rules for Companies.
Accordingly, the participation of the directors in the Loan
Facilities constitutes a related party transaction pursuant to Rule
13 of the AIM Rules for Companies.
The independent director of Kazera, Larry Johnson, having
consulted with the Company's Nominated Adviser finnCap, considers
that the terms of the Loan Facilities are fair and reasonable
insofar as the Company's shareholders are concerned.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
**ENDS**
Kazera Global plc (c/o Camarco) Tel: +44 (0)203 757 4980
Larry Johnson (CEO)
finnCap (Nominated Adviser Broker) Tel: +44 (0)207 220 0500
Scott Mathieson / Anthony Adams (corporate
finance)
Peterhouse Corporate Finance Limited Tel: +44 (0)207 220 9797
Duncan Vasey / Lucy Williams
Tel: +44 (0)20 3781 8331
Camarco (PR)
Gordon Poole / James Crothers / Monique
Perks
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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