London Mining Plc COMPLETION OF DEBT REFINANCING (1806W)

TIDMLOND

RNS Number : 1806W

London Mining Plc

23 December 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")

23 December 2013

result of BONDHOLDER MEETING and COMPLETION OF DEBT REFINANCING

London Mining is pleased to announce that the extraordinary resolution proposed at a meeting of holders of the US$110 million Guaranteed Convertible Bonds (the "Bonds") seeking approval to, inter alia, extend the maturity of the Bonds has been duly approved. As a result, all conditions precedent to enable drawdown of its expanded and extended USD 200 million corporate debt facility have now been satisfied.

The final maturity of the Bonds has now been extended to 30 April 2019 and the interest rate has been increased from 8 per cent to 12 per cent. The conversion price of the Bonds remains unchanged. The amended terms of the corporate debt facility include an extension of the final maturity to 31 March 2019, accompanied by an increase from USD180 million to USD200 million.

The debt refinancing is a significant step for London Mining to achieve its stated strategy of expanding capacity at Marampa to 6.5Mwmt/a and extending the mine life to over 40 years with no further dilution to shareholders.

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 (final maturity extended from 15 January 2016)

-- Interest rate on both facilities of LIBOR + 8.50 per cent. per annum, subject to a ratchet down of 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: "I am pleased to announce that we have successfully completed the refinancing of our current Bank facilities and Convertible Bonds that allow London Mining to fund its stated strategy of expanding capacity at Marampa to 6.5Mwmt/a and significantly extend the life of mine beyond 40 years with operating costs of USD39/wmt to USD42/wmt following the mine life extension. Financing of this strategy has been achieved with no material increase in total debt and no dilution to shareholders in line with our objective of maximising shareholder value."

For more information please visit www.londonmining.com or contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Benjamin Lee, Chief Financial Officer 
  Thomas Credland, Head of Investor Relations    +44 (0)20 7408 7500 
 Liberum Capital (Nominated Advisor/Broker) 
  Tom Fyson / Clayton Bush / Ryan de Franck      +44 (0)20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Ignacio Borrell / Ben Davies                   +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 information is provided by RNS

The company news service from the London Stock Exchange

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