Corporate Update
May 01 2009 - 5:26AM
UK Regulatory
TIDMZRL
RNS Number : 5788R
Zambezi Resources Ltd
01 May 2009
1 May 2009
Zambezi Resources Limited
(AIM: ZRL; ASX: ZRL)
Corporate Update
Zambezi Resources Limited ("Zambezi" or the "Company") (AIM: ZRL; ASX:ZRL) today
announces that, further to announcements on 28 November 2008 and 31 March 2009,
it has reached agreement with all its major creditors for the conversion of debt
to ordinary shares at AUD$0.02 cents per share subject to shareholder approval.
Shareholder approval will be sought for the issue of 161,685,161 ordinary
shares.
Following the issue of these shares, the Company will have 388,561,335 ordinary
shares in issue, assuming that no additional ordinary shares are issued by the
Company in the interim period.
The creditors have also agreed to extend the existing standstill arrangements to
the earlier of the shareholder approval for the conversion of debt or 30 June
2009. The moratorium will allow Zambezi the opportunity to prepare a notice of
meeting seeking the requisite shareholder approval and then to raise
additional funds for its projects in Zambia.
The Company is continuing discussions with various parties with a view to
refinancing the Company on its own behalf and through intermediaries acting on
its behalf. This includes sourcing interim funding until adequate funding for
the foreseeable future has been secured. The Company's current strategy is aimed
at minimising on going costs while retaining the intellectual property and
knowledge base built up over the past five years.
For more information contact:
+------------------------------+----------------------------+
| Julian Ford, Managing | Simon Edwards / Adam Lloyd |
| Director | Evolution Securities Ltd |
| Zambezi Resources | + 44 20 7071 4300 |
| (Australia) | |
| +61 (08) 9216 9000 | |
| +61 (0) 418 949 580 | |
| | |
+------------------------------+----------------------------+
| Fiona Owen | |
| Grant Thornton UK LLP | |
| +44 20 7383 5100 | |
+------------------------------+----------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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