Cradle Arc PLC Operational and Financial Update and Suspension (7301J)
06 Décembre 2018 - 5:50PM
UK Regulatory
TIDMCRA
RNS Number : 7301J
Cradle Arc PLC
06 December 2018
Cradle Arc plc / EPIC: CRA.L / Market: AIM / Sector: Mining
6 December 2018
Cradle Arc plc
("Cradle Arc" or the "Company")
Operational and Financial Update
and Suspension of Trading
Cradle Arc (AIM:CRA), the African focused base and precious
metals exploration and production company, announces that, further
to its announcement of 19 November 2018, the conditional US$4m
extension to its subsidiary, Leboam Holdings (Pty) Limited's
("Leboam"), pre-existing working capital facility (the "Working
Capital Facility Extension" or "WCFE") with Fujax Minerals and
Energy Limited ("Fujax") has not been completed.
As previously announced, the Working Capital Facility Extension
was conditional on, inter alia, the completion of the requisite
documentation and Fujax's final credit committee approval. Whilst
Fujax advanced the sum of US$1m to Leboam pending completion of the
extended facility, it has now informed the Company that it will not
permit any further drawdowns unless Leboam agrees to vary the
previously agreed, but not legally binding, terms and grant
security over its interest in the Mowana Copper Mine in Botswana
("Mowana" or the Mine") in respect of both the WCFE and all other
indebtedness due to it by Leboam.
Accordingly, the Company has entered into negotiations with
certain of the group's secured debt providers, namely the holders
of the US$10m secured loan notes, which mature in April 2019, and
ZCI Limited, to seek their consent to share their security over
Mowana with Fujax. However, to date, such negotiations have not
been progressing in a positive direction.
The inability to agree the requisite documentation for the WCFE
and hence be able to draw down further on the WCFE has placed
significant pressure on Leboam's working capital position, such
that Leboam's Board has regrettably decided to suspend mining
operations at Mowana until further notice.
In light of the above, the Company's Board is seeking insolvency
advice and, accordingly, pending clarification of the financial
position, the Company has requested that the trading of its
ordinary shares on AIM be suspended as soon as practicable.
A further announcement will be made as and when appropriate.
**ENDS**
For further information on the Company, please visit
www.cradlearc.com or contact:
Cradle Arc plc Tel: +44 (0)20 7637 5216
Kevin van Wouw
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
James Spinney
Matthew Chandler
SP Angel Corporate Finance Tel: +44 (0)20 3470 0470
LLP
Ewan Leggat
John Meyer
Tavistock Communications Limited Tel: +44 (0)20 7920 3150
Charles Vivian
Gareth Tredway
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
About Cradle Arc
AIM-quoted Cradle Arc plc is the 60 per cent. owner of the
Mowana copper mine in Botswana, an open pit mine and processing
facility located in the north-east of the country, approximately
120 km northwest of Francistown.
The Company has an independent open pit ore reserve estimate
(Proved and Probable JORC 2012) of 31.8 Mt at 1.17% Cu for 370,800
tonnes contained copper, based on a Dense Media Separation (DMS)
mine plan.
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 rns@lseg.com or visit www.rns.com.
END
MSCUNONRWSAURAA
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December 06, 2018 11:50 ET (16:50 GMT)
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