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FOCUS MINERALS LTD — Capital/Financing Update 2020
Oct 13, 2020
64932_rns_2020-10-13_ea08368a-7ee6-439f-9afa-5c7404fb9482.pdf
Capital/Financing Update
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Market Announcement
14 October 2020
SD-Gold Loan Facility Agreement
Western Australian gold explorer Focus Minerals Ltd (ASX: FML) ( Focus or the Company ) is pleased to announce that Focus and its major shareholder, Shandong Gold Group Co. Ltd ( SD-Gold ), have executed a loan facility agreement ( Facility Agreement ).
SD-Gold will provide an unsecured loan of A$20 million to Focus for project studies and general corporate purposes. The key terms of the Facility Agreement are as follows:
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Term: 3 years, principal payable at the end of the term
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Interest: 3.5% per annum, payable quarterly in arrears
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Representations, warranties, undertakings and events of review / default: generally on common terms for unsecured loan agreements
The provision of the loan by SD-Gold under the Facility Agreement has been approved by the State Administration of Foreign Exchange of the People’s Republic of China, and the funds will be available to the Company by the end of October 2020.
Commenting on signing the Facility Agreement, Focus’ CEO, Mr Zhaoya Wang said, “ The cash injection will allow the Company to advance the Coolgardie Gold Project towards production by conducting a Definitive Feasibility Study while maintaining the pace on progressing the flagship Laverton Gold Project. ”
Focus has treated the Facility Agreement as a related party transaction. The Independent Directors of Focus led the negotiation process with SD-Gold and consider that the transaction contemplated by the Facility Agreement has been concluded on arm’s length terms (or better) and, accordingly, shareholder approval is not required under Chapter 2E of the Corporations Act.
The Independent Directors unanimously approved entry into the Facility Agreement.
Focus Minerals Limited ACN 005 470 799 | ABN 56 005 470 799 | ASX: FML Level 2, 159 Adelaide Terrace, East Perth WA 6004 | PO Box 3233, East Perth WA 6892 T +61 (0) 8 9215 7888 | F +61 (0) 8 9215 7889 | E [email protected] | W focusminerals.com.au
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The release of this ASX announcement was authorised by the Board of Directors of Focus Minerals Ltd.
For further information please contact:
For media and investor enquiries please contact:
Zhaoya Wang Peter Klinger CEO Director, Investor Relations Focus Minerals Ltd. Cannings Purple Phone: +61 08 9215 7888 Phone: +61 411 251 540 Email: [email protected] Email: [email protected]
About Focus Minerals Limited (ASX: FML)
Focus Minerals is a Perth-based, ASX-listed gold exploration company focused on delivering shareholder value from its 100%-owned Laverton Gold Project and Coolgardie Gold Project, in Western Australia’s Goldfields.
The flagship Laverton Gold Project covers 386km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm sufficient gold mineralisation at the Beasley Shear Zone, Lancefield-Wedge Thrust and Karridale to support a Stage 1 production restart at Laverton.
Focus is committed to delivering shareholder value from the Coolgardie Gold Project that includes the 1.4Mtpa processing plant at Three Mile Hill (on care and maintenance), by continuing exploration and value-enhancing activities.
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