Emerging Market Minerals Plc
(“Emerging Market Minerals” or the “Company”)
Emerging Market Minerals (AIM:EMM), the AIM quoted uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces that it has entered into a further working capital loan facility (the “Facility”) with Matryoshka Ltd (“Matryoshka”), a company wholly beneficially owned by Mr Martin Nicholls, Executive Chairman of the Company, for an amount of up to £250,000. This Facility is in addition to the loan facility of £100,000 provided by Matryoshka to the Company on 30 March 2016, which has been fully drawn down.
The Facility is unsecured and has a fixed term of eighteen months, at which time it will be repayable in full, together with an interest payment, accrued daily, of five per cent. per annum, in cash. In the event of any default the interest rate will increase to eight per cent.
The Company is currently evaluating a number of possible opportunities and, in the event that a suitable project is identified, the Company intends to seek to secure sufficient additional funding to pursue such opportunity at the appropriate time. In the event that the Company undertakes a further financing by way of an equity issuance of in excess of £4,000,000 prior to 31 December 2016, any amounts undrawn under the Facility will no longer be made available to the Company.
Whilst the proceeds of the Facility will be used for the Company’s immediate working capital purposes, the ability of the Company to continue as a going concern will be dependent on raising further funds to meet its ongoing operational and capital commitments, including those relating to sourcing, evaluating and acquiring potential new assets. The Board currently remains confident that it will be able to secure additional working capital in the short term, as required, and further announcements will be made in due course as appropriate.
Martin Nicholls is a director of the Company and, as such, he is a related party of the Company pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the Company entering into the Facility with Matryoshka is deemed to be a related party transaction pursuant to AIM Rule 13.
The independent director for the purposes of AIM Rule 13 (being Roy Spencer), having consulted with the Company's nominated adviser, Strand Hanson Limited, considers that the terms of the Facility are fair and reasonable insofar as the Company’s shareholders are concerned.
For further information, please contact:
|Emerging Market Minerals Plc||Tel: +44 (0)20 3637 5933|
|Martin Nicholls, Executive Chairman|
Strand Hanson Limited (Nominated Adviser)
Tel: +44 (0)20 7409 3494
|Pareto Securities Limited (Broker)||Tel: +44 (0)20 7786 4370|