Loan from HK ECE and Directorate Change

RNS Number : 8283F

China Africa Resources PLC

16 November 2015

 

16 November 2015

China Africa Resources plc

 ("China Africa Resources" or the "Company")

Loan from HK ECE and Directorate Change

Loan from HK ECE

China Africa Resources plc announces that it has today entered into a loan agreement with Hong Kong East China Non-Ferrous Resources Co. Ltd. ("HK ECE"), a subsidiary of East China Mineral Exploration and Development Bureau.

The loan is for a principal sum of US$200,000, which has been drawn in full by China Africa Resources on entering into the agreement, and will be used for general working capital purposes. The loan is unsecured, repayable on 30 June 2016 and carries interest at one year US$ LIBOR (which is currently 0.9 per cent.).

Following draw down of the loan, the Company has approximately US$700,000 in cash reserves.  The Company continues to review the funding options for its Berg Aukas project and is managing its cash reserves and costs in the interim. 

HK ECE is the majority shareholder of China Africa and, accordingly, the loan is a related party transaction under the AIM Rules for Companies. China Africa confirms that the independent directors, being James Richards, Frank Lewis, Rod Webster and John Bryant, consider, having consulted with the Company's Nominated Adviser, RFC Ambrian, that the terms of the loan are fair and reasonable in so far as the Company's shareholders are concerned.

Directorate Change

China Africa Resources announces that Jingbin Tian, one of its non-executive directors, has resigned as a director of the Company with immediate effect.

Jingbin Tian was appointed as a director in conjunction with the investment of HK ECE and the Company would like to thank him for his contribution as a director since then.

For further information contact:

Rod Webster, Chief Executive Officer             China Africa Resources plc             [phone]

Kevin Ellis, Company Secretary

Samantha Harrison,                                       RFC Ambrian Limited                      [phone]

Nominated Advisor and Brokers

 

END

 

 

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