Strategic Natural Resources PLC Financial update (8683U)
06 Diciembre 2013 - 1:01AM
UK Regulatory
TIDMSNRP
RNS Number : 8683U
Strategic Natural Resources PLC
06 December 2013
Strategic Natural Resources Plc
("SNR" or the "Company")
Financial and liquidation notice update
Further to the financial update announced by the Company on
2(nd) December 2013, SNR is today providing a further update.
Financial update
Elitheni Coal (Pty) Limited ("Elitheni"), SNR's 74% subsidiary,
has informed SNR that it has recently received an unsecured loan of
ZAR 15 million (approximately GBP875,000) from Andrew Ruhan (the
"Ruhan Loan"). The Ruhan Loan will bear no interest and has no
fixed repayment date. It is not convertible into shares in Elitheni
or SNR and has no security over any of Elitheni or SNR's
assets.
The Ruhan Loan will principally be used by Elitheni to repay all
amounts advanced to it by Rapidtrade 644 (Pty) Limited
("Rapidtrade") pursuant to the advance by Rapidtrade announced on
6(th) November 2013, thereby releasing the security held by
Rapidtrade over 10% of Elitheni's issued ordinary share capital.
The boards of Elitheni and SNR would like to thank Rapidtrade for
its assistance and support at this time. The balance of the Ruhan
Loan will be applied by Elitheni to repaying the legitimate current
creditors of Elitheni, including the legitimate claims of the
creditors submitting the recent liquidation notice.
The Board of SNR also announces that it has been in discussions
with Land Consultants Limited ("LCL") about the repayment of the
existing short term bridging loan provided by LCL to the Company.
Following these discussions, LCL has, subject to formal agreement,
agreed that SNR can immediately draw down a further GBP500,000
under the existing bridging loan. In addition, LCL has indicated
that it is prepared, subject to LCL receiving further security over
SNR's assets (principally being SNR's 100% shareholding in
Acharnian Mining Limited, which owns 74% of Elitheni and has circa
GBP21.2 million of loans outstanding to Elitheni) to provide a
guarantee on behalf of Elitheni to cover the cost of settling any
additional creditor claims which are determined by the Court in
South Africa to be legitimate. Further, LCL has indicated to SNR
that it is prepared to extend the repayment of the bridging loan to
30(th) June 2014, although this also remains subject to amendment
of the loan agreement.
The proceeds of LCL's bridging loan advance will be used to
provide working capital to cover Elitheni and SNR's operating and
other costs and will be added to SNR's loan to Elitheni (in respect
of amounts advanced by SNR to Elitheni).
Update on the liquidation notice
On 29(th) November 2013, Elitheni received a liquidation notice
(the "liquidation notice") in South Africa from a group of
creditors. The liquidation notice is due to be heard on 10(th)
December 2013 in South Africa.
Elitheni is working with its legal advisers in South Africa on a
submission for the Court hearing of the liquidation notice. This
submission will address what the Directors believe to be spurious
and incorrect claims being made by certain parties in South Africa,
including claims that Eltheni's mining licence is being transferred
to a third party. The Board of Elitheni has no plans to make such a
transfer.
Based upon the work done to date, the availability of funds to
pay current legitimate creditors and discussion with providers of
longer term finance, the Board of SNR is confident in its position
as regards the liquidation notice and the efficacy of the Elitheni
mine going forward.
Gabriel Ruhan, CEO of SNR, said "Despite the aggressive actions
of some parties in South Africa in trying to prejudice the
interests of Elitheni and destroy SNR's shareholders' value, we are
confident in our position regarding the liquidation notice.
"The refinancing of the group's short term debt will allow the
SNR and Elitheni boards to progress their ongoing discussions with
strategic investors. In recent days additional credible parties
have expressed an interest in investing in the Company and
Elitheni."
For further information, please contact:
Strategic Natural Resources plc
Andy Brennan, Chairman
Gabriel Ruhan, CEO +44 (0)20 3328 5656
Allenby Capital Limited - Nominated Adviser
and Broker
Nick Naylor/Mark Connelly +44 (0) 20 3328 5656
FTI Consulting
Ben Brewerton/Georgia Mann +44 (0) 20 7831 3113
For further information about Strategic Natural Resources plc
please visit www.snrplc.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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