11th Oct 2018 10:04
LONDON (Alliance News) - Shares rose in Fox Marble Holdings PLC on Thursday as it said it has acquired its joint venture partner - Gulf Marble Investments Ltd - for the Prilep Alpha Quarry located in Macedonia.
Shares in the Kosovo-focused marble company rose 12% at 8.14 pence on Thursday.
Fox Marble will pay EUR1.8 million through the issue of an unsecured convertible loan note, which is repayable on October 1, 2020, and carries an interest rate of Libor plus 1.5% per year.
Following the issue, Fox Marble now has GBP2.9 million in loan notes outstanding.
Through the acquisition, Fox Marble will re-acquire all the 40% royalty from gross revenue from the sale of block marble produced at the quarry, along with all the assets and equipment held by Gulf Marble.
In 2013, Gulf Marble first invested EUR1.7 million to acquire the license and signed an operating agreement with Fox Marble to operate the quarry, which netted Gulf Marble a royalty amounting to 40% of gross revenues made from the quarry.
"Our arrangements at the time afforded us the unique opportunity to not only acquire the rights to a white marble quarry containing the world famous white from the Prilep region of Macedonia but to develop the quarry to commercial standards. Our joint venture partners Gulf Marble have been instrumental in achieving this and we are grateful to them for helping us reach this goal," said Chief Executive Officer Chris Gilbert.
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