BAO Baobab Res.

TIDMBAO

RNS Number : 0569L

Baobab Resources PLC

23 April 2015

23 April 2015

Baobab Resources Plc

("Baobab" or the "Company")

Bridging Finance Facility

Baobab Resources Plc is pleased to announce that it has entered into a deed of variation to increase the existing US$2.0 million unsecured and interest free bridging finance facility with African Minerals Exploration & Development Fund II Sicar SCA ("AMED"), as lender, to a total loan amount of US$3.5 million (the "Loan"), as originally announced on 5 November 2014 and amended pursuant to a deed of variation and novation dated 26 February 2015. The proceeds of the Loan will be utilised by the Company as additional working capital and for general corporate purposes.

The Loan is repayable upon the earlier of (i) the completion of a capital raising by Baobab if, in the sole discretion of the lender, the financial position of Baobab is such that the bridging loan can be repaid in full; (ii) a change of control of the Company (other than a change of control involving the lender or any concert party related thereto); or (iii) 31 December 2015.

The Loan is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors of the Company (being Jeremy Dowler, Ben James and Frank Eagar) consider, having consulted with its nominated adviser Canaccord Genuity Limited, that the terms of the proposed transaction are fair and reasonable insofar as its shareholders are concerned.

Enquiries:

 
 Baobab Resources Plc 
  Ben James (Managing Director)      Tel: +258 21 486 404 
  Jeremy Dowler (Chairman)           Tel: +44 1372 450529 
  Frank Eagar (Finance Director)     Tel: +27 76 753 5377 
 Canaccord Genuity Limited         Tel: +44 20 7523 8000 
  (NOMAD, broker and financial 
  adviser to the Independent 
  Directors) 
  Henry Fitzgerald-O'Connor 
  Chris Fincken 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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