Avesoro Resources Inc. Loan Agreement (4587Q)
October 21 2019 - 2:00AM
UK Regulatory
TIDMASO
RNS Number : 4587Q
Avesoro Resources Inc.
21 October 2019
October 21, 2019
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Loan Agreement
Avesoro Resources Inc (the "Company" or "Avesoro") announces
that it has entered into a loan agreement in connection with an
additional working capital facility (the "New Facility") of up to
US$5,000,000, in a total of two tranches, with Avesoro Jersey
Limited ("AJL") to assist with satisfying the Company's near term
cashflow needs.
Loan Agreement
The Company intends to draw down a first tranche of US$3,500,000
in the coming days, with the funds being made available for general
working capital purposes. The second tranche of up to US$1,500,000
is drawable until December 31, 2019, at the mutual agreement of
both parties. The New Facility is unsecured and is subordinated to
the Company's existing facilities. Interest will be charged on the
drawn amount at a fixed rate of 3.0 per cent per annum. The
tranches of the New Facility are due to be repaid in full no later
than 12 months following drawdown of the relevant tranche. There is
no early repayment penalty. Following drawdown of the first
tranche, the balance of working capital loans provided by AJL to
the Company is US$45,735,025.
Related Party Transaction (AIM Rule 13)
AJL is a substantial shareholder of the Company (72.9% of the
Company's issued and outstanding Common Shares). As a result,
entering into the New Facility constitutes a related party
transactions under the AIM Rules for Companies. The independent
directors of the Company, being Mr David Netherway, Mr Jean-Guy
Martin and Mr Loudon Owen consider, having consulted with the
Company's Nominated Adviser, that the terms of the New Facility are
fair and reasonable insofar as the Company's shareholders are
concerned.
The entry into the New Facility is also a related party
transaction for the purposes of Multilateral Instrument 61-101 -
Protection of Minority Shareholders in Special Transactions ("MI
61-101") in Canada. The Company is relying on the exemption
available under section 5.7(f) of MI 61-101 from the minority
shareholder approval requirements. The New Facility is not a type
of related party transaction that is subject to the formal
valuation requirement under MI 61-101.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg
(Joint Broker)
Matthew Armitt / Detlir Elezi
Tel: +44(0) 20 3207 7800
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two gold mines across West Africa
and is listed on the Toronto Stock Exchange ("TSX") and the AIM
market operated by the London Stock Exchange ("AIM"). The Company's
assets include the New Liberty Gold Mine in Liberia and the Youga
Gold Mine in Burkina Faso.
For more information, please visit www.avesoro.com
Market Abuse Regulation (MAR) Disclosure
Certain information communicated in this announcement was, prior
to its publication, inside information for the purposes of Article
7 of Regulation 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRURSURKRARUAA
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