Kenmare Agrees Amendments with Lenders

Kenmare Resources plc ("Kenmare" or "the Company") 2 April 2009 Kenmare Agrees Amendments with Lenders Kenmare is pleased to announce that ongoing discussions with lenders have been successfully concluded. On 2 February 2009, Kenmare announced the deferral of a scheduled repayment of senior debt of US$11.3 million which was otherwise due on that date. It was also noted that discussions were continuing with lenders regarding a number of other matters designed to preserve liquidity within the Kenmare Group and accommodate the schedule for the achievement of full production at Moma in the second half of 2009. The following key waivers and amendments are now agreed: * Deferral of the scheduled senior principal instalment of US$11.3 million due on 4 August 2009. This instalment, together with the instalment of US$11.3 million originally due on 2 February 2009 and previously deferred, will be repaid commencing 1 February 2010 over the remaining life of the Senior Loans. These repayments will be in equal semi-annual instalments and, following financial completion, include additional mandatory prepayments equal to 25% of available cash flow after senior and subordinated debt service; * Access to the contingency reserve account ("CRA"), which presently has a balance of US$15 million, and a waiver until 31 December 2010 of any obligation for the Company to top up the CRA; * Changing the timetable for achieving financial completion, with operational and environmental tests (technical completion) to be concluded by 31 December 2010, marketing tests by 30 June 2011, and financial and legal tests to be concluded by 31 December 2012. Originally, all these tests were to be completed by 30 June 2009. Interest margins on subordinated loans will increase by 3% until technical completion and by 1% until financial completion. This additional margin will be payable only after senior loans have been repaid in full. Kenmare has agreed to pay fees to the lenders and their guarantors of US$1.9 million and 28.2 million ordinary shares in the Company, representing approximately 3.5% of the existing issued share capital of the Company. In circumstances which Kenmare considers unlikely, an additional contingent fee consisting of US$0.5 million and a further 28.2 million shares would be payable. Whether this additional contingent fee will be payable will be determined by 31 August 2009. Performance improvement projects designed to allow the facilities at Moma to reach full production in the second half of this year are progressing. Management remains confident that these projects will facilitate the mine in achieving full production in the second half of 2009. Production of heavy mineral concentrate, the limiting production parameter, in the first quarter of 2009 was 142,000 tonnes, an 18% increase on the fourth quarter of 2008. Charles Carvill, Chairman, said: "The Board is pleased that these waivers and amendments have been agreed with the lenders and that the Company is moving forward with the necessary projects which will enable us to complete the ramp-up to full production later this year." The Company will issue its preliminary results and Annual Report in respect of the year ended 31 December 2008 later this month. For more information: Kenmare Resources plc Michael Carvill, Managing Director Tel: +353 1 6710411 Mob: + 353 87 674 0110 Tony McCluskey, Financial Director Tel: +353 1 6710411 Mob: + 353 87 674 0346 Murray Consultants Elizabeth Headon Tel: +353 1 498 0345 Mob: + 353 87 989 7234 Conduit PR Ltd Leesa Peters/Fiona Hyland Tel: +44 207 429 6614 Mob: +44 781 215 9885 www.kenmareresources.com ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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