Convertible loan agreement for £3 million

RNS Number : 7052O

GCM Resources PLC

29 May 2015

 

29^th May 2015

GCM Resources plc

("GCM" or the "Company")

(LON:GCM) 

Convertible loan agreement for £3 million

GCM Resources plc (LON:GCM), a resource exploration and development company, announces it has today entered in to a convertible loan agreement (the "Loan") with Revenue Anchor Sdn Bhd  (the Lender) a Malaysian-based investor. The Loan is a two year unsecured financing facility of £3 million with no interest payable.

The Lender has the right to convert the outstanding balance of the Loan anytime at a subscription price of 11p per share provided that the Lender's interest does not reach or exceed 30% of the Company's issued capital. If the Lender exercises its right to convert, following conversion the shares are immediately locked-up and may not be disposed of for a period of two years from the date of conversion.

The Loan may be settled at any time prior to the repayment date of May 2017 if GCM elects to do so.

Commenting on today's announcement, Michael Tang, Executive Chairman of GCM Resources, stated:

"It is with great pleasure that I am welcoming Revenue Anchor Sdn Bhd as an important financing partner for GCM. The funding we have secured will be sufficient for GCM to pursue its goals of furthering the Phulbari Coal Project for the foreseeable future. I would like to thank the Board for their support throughout the process and also our shareholders for their patience and support of the Company and the Phulbari Coal Project."

For further information:

GCM Resources plc James Hobson CFO & Company Secretary  [phone]	Bell Pottinger Lorna Cobbett / Joanna Boon [phone]
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price [phone]

GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

 

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