Update on financial position

RNS Number : 4399C

Silvermere Energy PLC

16 April 2013

 



AIM:SLME

16 April 2013

Silvermere Energy plc

 ("Silvermere" or the "Company")

Update on financial position

On 11 January 2013, the Company announced a subscription to raise £371,000. An existing shareholder who subscribed for £80,000 worth of shares has subsequently failed to honour his irrevocable commitment to pay for them despite repeated verbal and written assurances to both the Company and its advisers that such funds were being or had been remitted directly or indirectly to the Company. That subscriber's 1,200,001 subscription shares in the capital of the Company have, however, already been admitted to trading on AIM. Silvermere has accordingly now instructed its lawyers to pursue the defaulting subscriber for the amount owed.

The unpaid subscription commitment has a material effect on the Company's available cash resources such that in the absence of a refinancing it is dependent upon the support of it s directors and creditors. The Company also has an unsecured convertible loan (the "Loan") of £750,000, repayment of which is due by the Company on 1 July 2013. It is now in default of significant outstanding financial commitments on its I-1 Well which could prejudice the Company's interest in the Well, in respect of which it has received a notice of default.

The Company is in active discussions with Athol Gold and Value Ltd, which holds 88 per cent. of the Loan, regarding the Loan.

A further announcement will be made as soon as practicable.

Enquiries:

Silvermere Energy plc
Andy Morrison, Chief Executive	Tel:  [phone]
Sanlam Securities (Nominated Adviser and Joint Broker)
Lindsay Mair/Scott Mathieson/Catherine Miles	Tel: [phone]
Peterhouse Corporate Finance Limited (Joint Broker) Jon Levinson	Tel:  [phone]

 

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