Funding and Banking Update

RNS Number : 4554H

Metals Exploration PLC

01 August 2019

 

METALS EXPLORATION PLC

Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the "Company"), the natural resources exploration and development company with assets in the Pacific Rim region.

Funding and Banking Update

Further to the Company's announcement dated 28 June 2019, Metals Exploration advises that its negotiations with its lenders, HSBC and BNP Paribas (the "Senior Lenders") and its major shareholders, MTL Luxembourg SARL and Runruno Holdings Ltd, as holders of its mezzanine debt (the "Mezzanine Debt Facilities") for a renewed a Standstill Agreement (the "Standstill Agreement") for a further month until 31 August 2019, were interrupted on 31 July 2019, due to Hong Kong businesses, including the Senior Lenders, shutting down in response to a Typhoon 8 warning signal.  

As a result, whilst a formal executed extension to the Standstill Agreement has not been possible, all parties have agreed to an extension of the existing Standstill Agreement until further notice.  The Company intends to seek a formal extension to the Standstill Agreement as soon as practicable and a further announcement will be made in due course.

Under the Standstill Agreement the Company is relieved of making both principal and interest payments due in relation to its Runruno Facility Agreement (the "Senior Facility") and the Mezzanine Debt Facilities.

The purpose of the Standstill Agreement is to allow the Company and all its lenders time to evaluate, and consider possible solutions to, Metals Exploration's current financial position.

This Announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

For further information please visit or contact www.metalsexploration.com

Darren Bowden	Chief Executive Officer	[phone]
Michael Langoulant	Interim Chief Financial Officer	[phone]

Nominated & Financial Adviser & Broker:	STRAND HANSON LIMITED
James Spinney, James Dance, Eric Allan	[phone]
Public Relations:	TAVISTOCK
Jos Simson, Barnaby Hayward	[phone]

 

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