30 September 2016
Hunter Resources plc
("Hunter" or the "Company")
Additional Convertible Loan
The Company is pleased to announce that it has agreed a further financing facility of £50,000 with Marine Investments (WA) Pty Limited ("Marine"), its largest shareholder, to provide an interim funding facility (the "Facility") to the Company.
The terms of the Facility are the same as those for the second element of the existing funding facility from Marine, which was announced on 20 June 2016 and approved by shareholders on 12 July 2016, save for the dates being revised accordingly.
The terms of the Facility are as follows:
· a total loan amount of £50,000;
· interest payable at 8% per annum on the full amount of the Facility;
· it is unsecured;
· for a term of two years, with early repayment by mutual consent;
· the Facility is convertible into new ordinary shares in the Company at a price of 0.157 pence per ordinary share at any time up until maturity; and
· warrants to be issued on the basis of one warrant for every two ordinary shares issued on conversion. The warrants will entitle Marine to subscribe for new ordinary shares in the Company at a price of 0.157 pence per ordinary share for a period of three years following conversion.
The Facility will satisfy the short-term general working capital requirements of the Company, but the Company anticipates the need to raise further capital during 2016 to progress operations in Peru.
The granting of the Facility constitutes a related party transaction under the AIM Rules of Companies ("the AIM Rules") as Marine is a substantial shareholder in the Company (as defined in the AIM Rules). The Board consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the Facility are fair and reasonable insofar as the Company's shareholders are concerned.
For further information, please contact:
Hunter Resources PLC
+44 7733 337 755
Allenby Capital Limited
(Nominated Adviser and Broker)
John Depasquale/Nick Harriss/Nick Naylor
+44 20 3328 5656
This information is provided by RNS