Source - RNS
RNS Number : 5148M
Independent Resources PLC
14 October 2016
 

14.10.16

 

Independent Resources Group PLC

("IRG" or "the Company")

 

Shareholder loan and related party transaction

 

Independent Resources plc (AIM:IRG) is pleased to announce that it has entered into a loan agreement ("Loan Agreement") for an unsecured loan of up to £340,000 ("Loan") with Brandon Hill Capital Limited ("Brandon Hill"), an existing shareholder and debt holder in the Company.

 

Under the Loan Agreement, Brandon Hill has agreed to advance the Loan to the Company, as and when requested by the Company at its sole discretion, save that the Company may not draw down more than £100,000 during any 30 day period of the Loan Agreement's duration. Combined with the loan agreement entered into on 28 September 2016, if the Loan were to be drawn down in full, IRG would have total indebtedness to Brandon Hill of £500,000, excluding accrued interest.

 

The Loan carries an interest coupon of 15% per annum and each draw down of the Loan, has a term of 1 year from the date of draw down ("Term"), save that IRG has the discretion to repay the outstanding principal and accrued interest, partially, or in full, at any time prior to the end of the Term, without incurring any penalty for such early repayment. Brandon Hill has not charged an arrangement fee on the Loan and no interest will be payable on any undrawn principal of the Loan.

 

The Loan will be used to meet IRG's near term funding requirements and provide additional working capital and liquidity to the Company.

 

Related Party Transaction

 

Brandon Hill Capital Limited hold approximately 10.7% of IRG's issued ordinary share capital and as such is considered to be a related party of the Company as defined by the AIM rules. The Loan therefore constitutes a related party transaction pursuant to AIM rule 13.

 

The Directors of IRG, having consulted with the Company's nominated adviser, Panmure Gordon (UK) Limited, considers that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.

 

Greg Coleman, Chief Executive Officer of IRG commented:

 

"We would like to thank our major shareholder Brandon Hill Capital for their continued support.  The structure of the Loan is highly favourable to IRG given the Company has the flexibility to drawdown funds only as and when they are required. As previously announced, IRG expects to receive accrued and ongoing revenues from its flagship East Ghazalat project in Egypt. By entering into this Loan Agreement the Company is on a more stable financial footing until those revenues are realised.

 

As announced previously, we look forward to updating the market in due course on the progress of the Company's asset portfolio".

 

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

 

For further information, visit www.ir-plc.com or contact:

 

Greg Coleman

Independent Resources plc

020 3367 1134




Adam James

Panmure Gordon (UK) Limited

020 7886 2500


(Nominated Adviser & Joint Broker)





Oliver Stansfield

Brandon Hill Capital

020 3463 5000

Jonathan Evans

(Joint Broker)





Simon Hudson

Tavistock Communications

020 7920 3150

 

 

 

 

 

 


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