TIDMLOND
RNS Number : 2255U
London Mining Plc
28 November 2013
NOT FOR DISTRIBUTION INTO THE UNITED STATES OF AMERICA OR ANY
JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE
THIS ANNOUNCEMENT
London Mining Plc
Quoted on London AIM (LOND LN)
("London Mining" or the "Company")
28 November 2013
PROPOSED EXTENSION AND AMENDMENT OF BANK FACILITIES AND
CONVERTIBLE BOND
Highlights
-- New debt package funds expansion of Marampa to 6.5Mwmt/a and
Life of Mine extension to over 40 years
-- Extended corporate debt facility agreed with existing lenders
-- Undertakings from 78.1 per cent of convertible bond holders
received to extend the final maturity date of convertible bonds to
30 April 2019
London Mining is pleased to announce that it has entered into a
conditional agreement with its existing lenders to increase total
facilities available from USD180 million to USD200 million and
extend maturity until 31 March 2019 from 15 January 2016 currently.
The funds will be made available as a USD150 million term facility
and a USD50 million revolving facility.
It also announces a proposal to extend the final maturity of the
USD110 million 8 per cent Guaranteed Convertible Bonds due 2016
(the "Bonds") to 30 April 2019. The extension of the final maturity
of the Bonds, if agreed, would be accompanied by an increase in the
interest rate in respect of the Bonds from 8 per cent to 12 per
cent. The conversion price would remain unchanged at GBP4.7541. The
refinancing of London Mining's existing bank facilities is
conditional upon the amendments to the Bonds becoming effective and
certain procedural conditions precedent, typical of a financing of
this type, being satisfied or waived. The amendments to the Bonds
are conditional upon all conditions precedent to the refinancing
being satisfied or waived other than those relating to the
amendments to the Bonds becoming effective.
The debt refinancing is a significant step in achieving the
strategic objectives of the Company. It is expected to allow London
Mining to pursue its stated strategy of significantly extending the
Marampa mine life to over 40 years and increasing the mine capacity
to 6.5Mwmt/a.
The Company is seeking approval to effect the amendments to the
Bonds by way of Extraordinary Resolution of the Bondholders at a
Bondholders' meeting to be held on 20 December 2013. The Company
has obtained undertakings to vote in favour of the Extraordinary
Resolution with respect to 78.1 per cent. of the Bonds outstanding.
For the Extraordinary Resolution to be passed, at least 75 per
cent. of the votes cast at the Bondholders meeting must be in
favour of the resolution. The quorum for the Bondholder meeting is
one or more persons holding not less than two-thirds in principal
amount of the Bonds for the time being outstanding.
Key terms of the Bank facilities refinancing:
-- Principal amount: USD200 million, increased from USD180 million
-- Facilities comprise USD150 million term facility and USD50 million revolving facility
-- Term facility repayable in escalating quarterly repayment
instalments with effect from and including 30 June 2016 to and
including 31 March 2019
-- Interest rate on both facilities of LIBOR + 8.50 per cent.
per annum, subject to a ratchet down by 0.75 per cent on successful
commissioning of the Marampa life of mine extension, and a separate
0.25 per cent on the satisfaction of certain conditions
-- Covenants typical for a secured facility of this type
-- The facilities will benefit from a security package which is
substantially the same as that which is currently in place for the
existing facility and which primarily relates to the Marampa iron
ore mine in Sierra Leone and the Isua iron ore project in
Greenland
Key terms of the Bonds refinancing:
-- Principal amount: USD110 million
-- Extension of the final maturity of the Bonds from 2016 to 30 April 2019
-- Increase in the interest rate of Bonds from 8 per cent to 12
per cent with effect from 15 February 2014 and for each interest
period up to 15 August 2018. In respect of the interest period
beginning on 15 August 2018 and ending on 30 April 2019, an amount
of USD6,000 per Bond (each having a principal amount of USD100,000)
will be paid
-- The coupon dates will be 16 February and 16 August of each
year, for the years 2014 to 2018. The final coupon will be payable
at the final maturity date of 30 April 2019
-- Conversion price to remain unchanged at GBP4.7541
Graeme Hossie, Chief Executive of London Mining said: "We have
completed another important step in the ongoing development of
London Mining and are pleased to have the continued support of our
existing lenders after comprehensive due diligence of our current
operations and life of mine feasibility study for Marampa. Through
implementing our strategy to expand to a 6.5Mwmt/a (6Mdmt/a)
operation by the end of 2014 with life of mine operating costs of
USD39/wmt to USD42/wmt (USD42/dmt to USD45/dmt) we expect to be
well positioned to deliver a sustainable 40 year operation and
strong returns to shareholders. Financing of this strategy will
have been achieved, upon completion, with no material increase in
total debt and no further dilution of existing shareholders."
For more information, please contact:
London Mining Plc
Benjamin Lee, Chief Financial Officer
Thomas Credland, Head of Investor Relations +44 (0)20 7408 7500
Liberum Capital (Nominated Advisor/Broker)
Tom Fyson / Ryan de Franck +44 (0)20 3100 2000
J.P. Morgan Cazenove (Broker)
Ben Davies / Ignacio Borrell +44 (0)20 7742 4000
Brunswick Group LLP
Carole Cable / Rosheeka Field +44 (0)20 7404 5959
About London Mining
London Mining is an expanding producer of high specification
iron ore concentrate for the global steel industry and is focused
on identifying, developing and operating sustainable mines. London
Mining commenced sales from its 100% owned Marampa Mine in Sierra
Leone in 2012 and expects to reach production capacity of 6.5Mwmt/a
in 2014. Marampa has sufficient resources to support a staged
expansion to over 10.8Mwmt/a. London Mining has also completed
bankable feasibility studies outlining plans for a further 20Mwmt/a
of iron ore production by developing mines in Greenland and Saudi
Arabia. The Company listed on AIM in London on 6 November 2009. It
trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg).
More information about London Mining can be found at
www.londonmining.com.
This announcement does not constitute or form part of, and
should not be construed as, an offer for sale or subscription of,
or a solicitation of any offer to buy or subscribe for, any
securities of the Company or any other entity.
The distribution of this announcement may be restricted by law
in certain jurisdictions. This announcement does not constitute a
solicitation in any circumstances in which such solicitation is
unlawful.
This announcement is not being made, and has not been approved,
by an authorised person for the purposes of section 21 of the
Financial Services and Markets Act 2000. Accordingly, this
announcement is not being distributed to, and must not be passed on
to, the general public in the United Kingdom. The communication of
such documents as a financial promotion is only being made to those
persons in the United Kingdom falling within the definition of
Investment Professional (as defined in Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the "Order")) or persons who are within Article 43 of the
Order or any other persons to whom it may otherwise lawfully be
made under the Order.
This announcement is not for distribution, directly or
indirectly, in or into the United States (including its territories
and possessions, any State of the United States and the District of
Columbia). This announcement does not constitute or form a part of
any offer or solicitation to purchase or subscribe for any
securities in the United States. Any such securities have not been,
and will not be, registered under the United States Securities Act
of 1933, as amended (the "Securities Act"). Any such securities may
not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons (as such term is defined in
Regulation S under the Securities Act), except pursuant to an
exemption from the registration requirements of the Securities Act.
No public offering of securities will be made in the United States
or in any other jurisdiction where such an offering is restricted
or prohibited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQVLFLXFFXFBV
London Mining (LSE:LOND)
Historical Stock Chart
From Jun 2024 to Jul 2024
London Mining (LSE:LOND)
Historical Stock Chart
From Jul 2023 to Jul 2024
