22nd Jan 2020 10:03
(Alliance News) - Shares in Metals Exploration PLC jumped Wednesday as the firm reported two major international banks have taken over its debt.
Shares were 19% higher on Wednesday morning in London at 1.55 pence each. They are broadly flat over the past 12 months, though they had slumped to 0.35p in March last year.
HSBC and BNP Paribas have bought the debt that Metals Exploration owed to Runruno Holdings Ltd and MTL Guernsey Ltd, which is linked to MTL Luxembourg SARL. Runruno and MTL are major shareholders of Metals Exploration.
The AIM-listed company had a USD68.5 million facility with the two.
The miner said HSBC and BNP Paribas now hold Metals Exploration's mezzanine debt, meaning all debts are now consolidated. It expects the transaction to allow it to finalise a complete debt restructuring, giving it a "stable" debt profile.
Metals Exploration Chief Executive Darren Bowden said: "It is very pleasing to have concluded this initial step in the company's debt restructuring process. Negotiations with our new lenders are well progressed.
"Hopefully, following the completion of the transfer of the senior facility, these negotiations can be concluded swiftly, such that the company's financial position becomes sustainable; allowing management to focus its efforts on improving operational performance at Runruno and to consider growth options for the company."
Metals Exploration has been in talks over its debt position for some time, having agreed a number of standstills on repayments which gave it some breathing space.
The company owns the Runruno gold project in the Philippines. In the third quarter of 2019, it produced 18,239 ounces of gold, 42% higher year-on-year.
By George Collard; [email protected]
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