SHFT Shaft Sink

TIDMSHFT

RNS Number : 0902T

Shaft Sinkers Holdings Plc

01 October 2014

1 October 2014

Shaft Sinkers Holdings plc (the "Company")

Funding Update and Impala 17 Tender

The Company announces that Hillside International Holdings Limited ("Hillside") has agreed to expand the quantum of funds made immediately available to the Company from GBP 3.5 million to GBP 5 million under the terms of the non-interest bearing loan facility (the "Hillside Loan"), previously announced on 22 August 2014. In addition, the Company has agreed a further GBP 3.0 million bank guarantee facility in relation to its contract with TNK Kazchrome JSC. The facility, which requires the Company to hold deposits in the bank, will run for the entire life of the Kazchrome project and is secured against the assets of Shaft Sinkers Kazakhstan LLP.

Preparations to raise up to GBP 9,200,000 by way of a proposed issue of convertible loan notes (the "Convertible Loan Notes") are continuing and will be amended to reflect the increase in the Hillside Loan. It is intended that part of the proceeds of the Convertible Loan Note offer will be used to repay the Hillside Loan entirely and Hillside will, accordingly, subscribe GBP 5,000,000 for Convertible Loan Notes. In all other material respects, the details of the Hillside Loan and Convertible Loan Notes set out in the announcement of 22 August 2014 are unchanged.

The proposals relating to the Hillside Loan and Convertible Loan Notes are subject to regulatory and shareholder approvals. The Company intends to post a circular to shareholders by 22 October 2014 and thereafter to complete the refinancing package by November 2014.

As announced in April 2014, the Company and Impala Platinum Limited ("Impala") revised the terms of the Impala 17 contract to more equitably share risks between the two parties following significant losses incurred on the project by Shaft Sinkers. The revised contract terms covered the period until October 2014 in order to allow Impala time to retender the contract. Shaft Sinkers participated in the retender process but has been notified by Impala that its bid was not successful and the Company's work at Impala 17 will therefore terminate on 15 December.

ENDS

For further information:

   Shaft Sinkers Holdings plc                               +44 (0) 787 595 1362 

Alon Davidov, Chief Executive Officer

Chris Hall, Chief Financial Officer

   Aura Financial                                                      +44 (0) 207 321 0000 

Andy Mills/Michael Oke

This information is provided by RNS

The company news service from the London Stock Exchange

END

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