| Tue 29 Jun 2010, 16:13 | | MTX - Metorex Limited - Metorex Ringfences the Ruashi project debt |
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MTX
MEMTX
MTX - Metorex Limited - Metorex Ringfences the Ruashi project debt
METOREX LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
JSE code: MTX
ISIN: ZAE000022745
("Metorex" or "the Company")
METOREX RINGFENCES THE RUASHI PROJECT DEBT
Metorex is pleased to inform shareholders that it has reduced the Ruashi
project finance facility ("Ruashi Debt") by a further US$16 million to
US$84,9 million. The objective of this voluntary pre-payment was to
ring-fence the Ruashi debt and de-risk the Metorex company balance sheet.
The pre-payment was funded from the recently completed capital raising through
a claw back offer ("Claw Back Offer"). Details of the Claw Back Offer, use
of the related proceeds and the Revised Ruashi Debt Package ("RRDP") were
provided in several Company announcements, specifically on 25 March 2010
and 29 January 2010.
In terms of the RRDP, the Ruashi Debt becomes non-recourse to Metorex when
the outstanding balance is reduced to below US$85 million, no event of default
is continuing and political risk insurance is in place ("the Non-recourse
Conditions"). Following this pre-payment, the Non-recourse Conditions have
been met and the Ruashi Debt is now entirely ring-fenced to the Ruashi legal
entity. Metorex has now reduced the Ruashi Debt by US$101 million (55 percent)
since December 2009. In terms of the RRDP, this voluntary pre-payment is an
advance towards the first instalment due 1 January 2011.
Chief Executive Officer, Terence Goodlace commented: "The non-recourse event
further de-risks the Metorex company balance sheet and provides us with
financial flexibility and optionality in terms of our growth projects` funding
strategy. Currently, our potential development projects include Kinsenda,
Lubembe and Musonoi (Dilala East) in the Democratic Republic of the Congo."
All Company announcements including Competent Persons Reports on the Company`s
production as well as development assets are available on the Company website,
www.metorexgroup.com
Rosebank
29 June 2010
For further enquiries please contact:
Metorex
CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill
Jacques de Bie Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 29/06/2010 16:13:02 Produced by the JSE SENS Department.
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