Information  X 
Enter a valid email address

Frontera Resources (FRR)

  Print      Mail a friend

Wednesday 12 December, 2018

Frontera Resources

Financing Update

RNS Number : 1694K
Frontera Resources Corporation
12 December 2018
 

12 December 2018

 

Frontera Resources Corporation

 

("Frontera" or "the Company")

 

Financing Update

 

Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to announce that on 11 December 2018 it signed a term sheet (the "Term Sheet") with a New York, U.S.A.-based fund seeking to secure a loan of up to $60,000,000 (the "Transaction"). The Term Sheet is not a commitment letter, nor a commitment to providing financing to the Company.

 

This funding would be deployed for the operations at the Company's Block 12 license area in Georgia in the year 2019.

 

Pursuant to the Term Sheet, the loan would be on a delayed senior secured basis and the initial availability would be $45,000,000, of which up to $20,000,000 could be used to retire the Company's existing debt. The loan would be for a term of 5 years with interest rate varying between 8% and 11%. Other fees will include origination fee of 3% of the draw down amount which is payable at the time of the draw down, and the application fee of $150,000 which is payable at the inception of the Term Sheet. The loan would be secured with a first lien on the Company's Georgia assets or a pledge of shares of the Company subsidiary that holds such assets, subject to definitive agreements.

 

The completion of the Transaction and the entry into definitive agreements is subject to successful completion of due diligence and field survey to be undertaken by the lenders.

 

Zaza Mamulaishvili, President and CEO, commented:

 

"We are pleased to have signed this term sheet that sets basis for the new capital inflow in 2019. These funds would be used to accelerate our work programs in the Taribani field as well as throughout Block 12, and would be instrumental in reaching our goal to achieve commercial development of Block 12 in Georgia. We look forward to continuing working with the financiers to finalize the necessary due diligence and definitive agreements, and being able to start utilizing this funding for operations."

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

Enquiries:

 

Frontera Resources

(713) 585- 3216


Zaza Mamulaishvili



[email protected]



 

Cairn Financial Advisers LLP

+44 (0) 20 7213 0880


Jo Turner / Liam Murray

 



WH Ireland Limited

+44 (0) 20 3411 1880


James Joyce / Chris Viggor

 



Yellow Jersey 

+44 (0) 203 735 8825


Tim Thompson



Harriet Jackson



Henry Wilkinson




 

 

 

 

 

 


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 [email protected] or visit www.rns.com.
 
END
 
 
UPDLLFLDFTLLLIT

a d v e r t i s e m e n t