Source - RNS
RNS Number : 6099K
23 September 2016

23 September 2016

BMR Group PLC ("BMR" or the "Company")

US$5.2 million project construction and trade finance facility

The Board is pleased, further to its announcement on 8 August 2016, to announce that on 22 September 2016 the Company and its wholly owned subsidiary Enviro Mining Limited ("EML") entered into the anticipated project construction and trade finance facility (the "Facility") for up to US$5.2 million with African Compass International Limited ("ACI"), a private South African group engaged in mining, energy and agri-business.

The Facility provides that ACI will make available to EML upon achievement of various milestones, through to commissioning of the KABWE plant and proof of saleable product (the "Final Milestone"), up to US$4.2 million for use in connection with the plant, and materials processed, at Kabwe.  In addition, the Facility provides for the drawdown of US$1.0 million to satisfy the consideration payable to exercise the option agreement with Bushbuck Resources Limited for the acquisition of its Star Zinc Large Scale Prospecting Licence 19653-HQ-LPL in Zambia, as announced on 16 August 2016.

Drawdowns under the Facility, which is interest free but involves an arrangement fee of US$0.1 million, are to be re-paid within 12 months of the Final Milestone, by set off against product revenues due from ACI, or, at EML's election, in cash.

EML's obligations under the Facility have been guaranteed by BMR.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Alex Borrelli, Chairman of BMR, commented:

"This facility represents a defining moment for the Company as the financing has underpinned our planned cost of the Plant at Kabwe.  

We are pleased to have delivered this facility for the benefit of our shareholders who have supported the management team in our endeavours for processing the Kabwe tailings.

The facility also provides us with the funding necessary for exercising the option agreement on the Star Zinc licence.

Our continuing progress on our schedule of works at Kabwe remains in line for completing the plant construction for commissioning in 2017."


For further information:

BMR Group PLC                                                                                 020 7734 7282

Alex Borrelli, CEO and Chairman


WH Ireland Limited                                                                           020 7220 1666

NOMAD and Joint Broker

Chris Fielding, Head of Corporate Finance


Peterhouse Corporate Finance                                                        020 7469 0930

Joint Broker  

Lucy Williams/ Duncan Vasey/ Heena Karani


This information is provided by RNS
The company news service from the London Stock Exchange

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