Kingsrose reports changes to financing arrangement
Thursday, April 18 2013 - 12:40 PM WIB
ASX-listed Kingsrose Mining Limited reported on Thursday that it has decided to defer the activation of prepaid gold forward financing transaction.
The decision was made in consultation with lender Credit Suisse as a result of delays experienced in resuming full mining activities at the Way Linggo Project.
It said that as an interim measure, A$5 million financing has been agreed with Beaurama Pty Ltd, an entity associated with one of the company?s non executive directors and substantial shareholder, James William [Bill] Phillips, on arms length basis, the terms of which are similar to or more advantageous to the company than those that could reasonably be expected to be reached with an independent third party lender.
The loan drawdown is expected before the end of April and will be used to fund development activities at Talang Santo and for general working capital purposes.
The key terms of the loan are among others the principal reached up to A$5 million with 8.5% pa interest rate.
It said that the repayment would take place from end January 2014 to end April 2014. "The lender will be repaid should the Company or a subsidiary raise more than US$15m from another lender or from a share issue," it said.
Editing by Adianto P. Simamora