London Mining Plc NEW DEBT FACILITY (9677O)

TIDMLOND

RNS Number : 9677O

London Mining Plc

13 August 2014

London Mining Plc

Quoted on London AIM (LOND LN)

("London Mining" or the "Company")

13 August 2014

New Debt Facility

London Mining announces that, further to its announcement on 17 July 2014 that it was in active and constructive discussions with its lending banks in order to provide an additional short term working capital facility, it has now entered into a new USD25 million debt facility with Standard Chartered Bank and FirstRand Bank. This new facility will provide additional short term working capital for the Company and matures on 30 November 2014, with an ability to extend to 31 December 2014 in the event of certain circumstances.

The interest margin of 8.5% and arrangement fee are in line with the existing secured debt facility. In addition, the Company has agreed further fees of USD3.5 million, of which USD1 million is payable on the maturity of the facility and USD2.5 million is payable upon completion of the strategic partner process which the Company announced on 12 May 2014. As part of the arrangements, the Company has granted to FirstRand Bank warrants over 2,768,508 shares, representing 2% of the existing share capital, plus additional shares to be issued if any new shares are issued during the exercise period pursuant to the exercise of currently outstanding share options, awards or convertible instruments. The warrants have an exercise price equal to the nominal value of the shares and a three year warrant exercise period and are subject to normal anti-dilution provisions.

The process to secure a substantial investment by a strategic partner in London Mining to reduce debt and fund future capital expenditure is progressing. Non-binding indications of interest have been received from a number of industry parties, who have performed due diligence, on a range of potential structures for the investment. The Company remains confident that the process will be concluded before the end of 2014. London Mining is being advised by Goldman Sachs International and Standard Chartered Bank on the process.

As previously announced, London Mining will release its H1 results on 21 August.

For more information, please visit www.londonmining.com or contact:

 
 London Mining Plc 
  Graeme Hossie, Chief Executive Officer 
  Benjamin Lee, Chief Financial Officer 
  Thomas Credland, Head of Investor Relations    +44 (0)20 7408 7500 
 Liberum Capital (Nominated Adviser/Broker) 
  Richard Crawley / Tom Fyson                    +44 (0)20 3100 2000 
 J.P. Morgan Cazenove (Broker) 
  Ben Davies / Ignacio Borrell                   +44 (0)20 7742 4000 
 Brunswick Group LLP 
  Carole Cable / Anna Carruth                    +44 (0)20 7404 5959

About London Mining

London Mining is an expanding producer of high specification iron ore concentrate for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced production from its 100% owned Marampa Mine in Sierra Leone in 2011, producing 3.4Mwmt/a in 2013 and plans to expand the mine to a capacity of 6.5Mwmt/a. Marampa has sufficient resources to support a staged expansion to 20Mwmt/a. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mwmt/a of iron ore production by developing mines in Greenland and Saudi Arabia. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg). More information about London Mining can be found at www.londonmining.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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