Patagonia Gold PLC US$15 million Loan Agreement (5074R)
01 Marzo 2019 - 1:00AM
UK Regulatory
TIDMPGD
RNS Number : 5074R
Patagonia Gold PLC
01 March 2019
1 March 2019
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
US$15 million Loan Agreement
Patagonia Gold Plc, the AIM-listed mining company with gold and
silver projects in the Patagonia region of Argentina and in Chile
and Uruguay, is pleased to announce that is has entered into an
agreement with Cantomi Uruguay S.A. ("Cantomi"), a company owned
and controlled by the Company's Non-Executive Chairman, Carlos
Miguens, for a loan facility of up to US$15 million (the "Loan
Facility").
Key terms of the Loan Facility
Pursuant to the terms of the Loan Facility, Cantomi has made
available to the Company an amount of up to US$15 million, which
can be drawn down in tranches at the Company's election, subject to
a minimum draw down amount of US$100,000 per tranche.
The Loan Facility matures on 31 March 2021 and interest is
payable on any amounts drawn down, accruing at a rate of 5 per
cent. per annum. All drawn down principle and accrued interest are
payable at maturity. At any time prior to maturity, the Company can
elect to prepay all or any portion drawn down and/or interest
accrued without incurring any early repayment penalty. The
agreement in respect of the Loan Facility contains customary
warranties, undertakings and events of default.
Use of Proceeds
Further to the Company's announcements of 19 February and 27
February 2019, the Company intends to utilise any amounts drawn
down under the Loan Facility for general working capital purposes,
refinancing of local debt in Argentina, as well as updating the
mineral resource estimate for Calcatreu and commencing a
Feasibility Study for the project.
Related Party Transaction
Cantomi is an associate of Mr Carlos Miguens and a substantial
shareholder of Patagonia Gold, interested in approximately 53.19
per cent. of the existing issued share capital. Accordingly,
Cantomi is considered a related party under the AIM Rules. In
addition, Mr Miguens is directly interested in 0.72 per cent. of
the Company. The provision of the Loan Facility therefore
constitutes a related party transaction pursuant to Rule 13 of the
AIM Rules for Companies. Accordingly, the independent Directors of
the Company (being all of the Directors other than Mr Miguens),
having consulted with the Company's Nominated Adviser, Strand
Hanson Limited, consider that the terms of the Loan Facility are
fair and reasonable insofar as the Company's shareholders are
concerned.
Christopher van Tienhoven, CEO of Patagonia Gold, commented on
the Loan Facility:
"The Loan Facility provided by Cantomi is crucial in terms of
moving Patagonia Gold forward. Despite the closures of Cap Oeste
and Lomada, the Company retains an important asset base, comprising
the over one million ounce standalone Calcatreu project in Rio
Negro, the Cap Oeste underground resource and prospective
exploration ground in Santa Cruz, Rio Negro and Chubut. The Loan
Facility will allow the Company to commence work on the Calcatreu
Feasibility Study and advance this project to the next level."
About Patagonia Gold
Patagonia Gold Plc is an AIM-listed mining company that seeks to
grow shareholder value through exploration, development and
production of gold and silver projects in the Patagonia region of
Argentina. The Company is primarily focused on the Calcatreu
project in Rio Negro. In addition, it is carrying out exploration
in Manchuria and Sarita in Argentina and San Jose in Uruguay.
Patagonia Gold, indirectly through its subsidiaries or under option
agreements, has mineral rights to over 250 properties in several
provinces of Argentina, Chile and Uruguay and is one of the largest
landholders in the province of Santa Cruz, Argentina.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
James Spinney / James Dance / Jack Botros
Strand Hanson Limited (Nominated Adviser and Broker)
Tel: +44 (0)20 7409 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRBRGDDLXDBGCI
(END) Dow Jones Newswires
March 01, 2019 02:00 ET (07:00 GMT)
Patagonia Gold (LSE:PGD)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Patagonia Gold (LSE:PGD)
Gráfica de Acción Histórica
De May 2023 a May 2024