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STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2014
Oct 16, 2014
65841_rns_2014-10-16_49cc0b00-0ea4-4a87-b77d-6bb87d795c66.pdf
Capital/Financing Update
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Suite 12, 186 Hay Street PO Box 8206 Subiaco WA 6008 Subiaco East WA 6008 Australia Australia t: +61 8 9340 6000 e: [email protected] f: +61 8 9340 6060 w: www.gippslandltd.com
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Corporate Update
Release Date: 17 October 2014
Key Points
• Dubai based Investment Bank mandated to procure strategic partner/investor.
FINANCING PROCESS – THE ABU DABBAB TANTALUM-TIN-FELDSPAR PROJECT
(50% Interest through 50% shareholding in Tantalum Egypt JSC)
Gippsland Ltd (the Company) is seeking to raise funds to complete a definitive feasibility study in the next 6 months and commence construction of the Abu Dabbab Tantalum-Tin-Feldspar Project (the Project), located in Egypt. With a focus on the MENA region the Company has been in discussions with a variety of potential investors regarding an opportunity to earn-in to Gippsland’s 50% equitable interest in the project currently held through its 100% subsidiary, Tantalum International Pty Ltd (TIPL), which holds shares in the joint venture company, Tantalum Egypt JSC. As disclosed previously this process has been significantly delayed by the holy month of Ramadan and the ensuing 6 week long MENA wide summer holiday break.
To this stage the Company has mandated a Dubai based investment banking group to raise the required funds, whilst also facilitating due diligence and progressing discussions with several groups previously identified by Gippsland. A further series of meetings with a shortlist of potential strategic partners/investors is planned for late October.
If the initiatives outlined above progress positively, the following transaction stages would likely comprise agreement on an investment structure through a conditional non-binding Memorandum of Understanding leading to a detailed due diligence process, culminating in a binding investment agreement, ideally prior to the end of this year. However, whilst several transaction outlines have been discussed, to date no terms sheet or definitive proposal has been presented to Gippsland.
The process outlined above takes time and raises the challenge for the Board of maintaining Gippsland’s current operations which includes the small Australian team, the Egyptian site infrastructure and all Egyptian staff until sufficient clarity on a financing deal emerges which either generates funds for Gippsland directly or enables Gippsland to raise capital independently on the basis that the Project is “self-funding” as a result of the possible pending transaction.
This is the key milestone that the Gippsland Board is striving to achieve and indeed Gandel Metals (a company associated with Gippsland’s Chairman and major shareholder, Ian Gandel) is assessing in its ongoing funding of the Company, together with the time frame to achieve a financial close which would relieve Gandel Metals of the ongoing funding burden. The Board remains hopeful of achieving that milestone event and management is working tirelessly to achieve a positive result, but prudently there is concern about the increasing level of indebtedness to Gandel Metals notwithstanding universal appreciation for that ongoing support to date.
Further updates will be provided as appropriate.
Mike Rosenstreich (Managing Director) www.gippslandltd.com
T: +61 8 9340 6000
1 Corporate Update 17 October 2014