9 May 2024
METALS EXPLORATION
PLC
UPDATE ON DEBT
DISCUSSIONS
Metals Exploration plc (AIM: MTL)
("Metals Exploration", the "Company" or the "Group"), a gold
producer in the Philippines, provides a further update on
discussions with its lenders in respect of the repayment of the
Group's mezzanine debt facilities.
Further to the Company's
announcement on 27 March 2024, Runruno Holdings Limited ("RHL") and
D & A Holdings Limited ("D&A") (together, the "RHL Group")
have written to the Company
disputing the Company's
position that a 7% (as opposed to 15%)
interest rate should apply under the Company's mezzanine
facilities since 3 November 2022 (the date
at which the Group's senior debt was substantively repaid) and,
accordingly, disputing that the Company has settled
all outstanding amounts due under such mezzanine
facilities.
In addition, the RHL Group has
claimed that several events of default have occurred under the
Group's senior and mezzanine facilities, such that the relevant
default interest rate (being a total of 12% under the senior debt
facility and 20% under the mezzanine debt facilities) should apply
with effect from 5 October 2023, which it claims would result in
approximately US$1.95 million being owed to the RHL Group pursuant
to the mezzanine facilities as at 31 March 2024.
The Company
disputes these allegations.
In light of the RHL Group's position
in respect of the application of 15% interest to its loans under
the mezzanine facilities, MTL (Luxembourg) S.à r.l. (Nick Candy's
investment vehicle, holding 70.7% of the mezzanine debt)
("MTL Lux") is also seeking
to receive this interest rate on its own loans to the
Company. This would result in approximately
US$4.4 million
being owed to MTL Lux pursuant to the mezzanine facilities as at 31
March 2024.
This is contrary to historical
assurances given by MTL Lux, including as announced on 24 January
2024 and 27 March 2024, that it agreed that the 7% interest rate
would apply to its loans under the mezzanine facilities, with
effect from November 2022. However, these assurances were
given either on an informal basis or for a limited period
only.
Having considered legal advice on
the matter, and while discussions continue, the Company will make
pro-rated settlement payments to the lenders of:
- US$2.2 million to MTL Lux; and
- US$0.91 million to the RHL Group,
being approximately 50% of the
amount that would be due to MTL Lux and the RHL Group
(respectively) under the Company's mezzanine facilities were the
rate of 15% (as opposed to 7%) to be applied up to 31 March
2024.
In addition, MTL Lux has formally
confirmed that it does not agree that any default interest is
payable under the senior or mezzanine facilities.
Further announcements will be made
in due course, as discussions with MTL Lux and the RHL Group to
seek a settlement of these matters continue.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014, which forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal)
Act 2018 (as amended). Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
- END -
For further information please visit
or contact:
Metals Exploration PLC
|
|
Via Tavistock Communications
Limited
|
+44 (0) 207 920 3150
|
Nominated & Financial Adviser:
|
STRAND HANSON LIMITED
|
James Spinney, James Dance, Rob
Patrick
|
+44 (0) 207 409 3494
|
Financial Adviser & Broker:
|
HANNAM & PARTNERS
|
Matt Hasson, Franck
Nganou
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+44 (0) 207 907 8500
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Public Relations:
|
TAVISTOCK
|
Jos Simson, Nick Elwes
|
+44 (0) 207 920 3150
|
Web:
www.metalsexploration.com
Twitter:
@MTLexploration
LinkedIn:
Metals
Exploration