16th May 2019 12:20
LONDON (Alliance News) - Trans-Siberian Gold PLC said Thursday a GBP9.4 million loan from Russian lender VTB Bank had been confirmed, as it prepares to use the funds to repurchase its own shares.
ZAO Trevozhnoye Zarevo - a wholly-owned subsidiary - entered into the loan agreement with VTB for a four-year term with a 10.7% annual interest rate.
The funds received by ZAO will be used to repay some of the loans owed to Trans-Siberian Gold. In turn, Trans-Siberian Gold will use these funds to repurchase 22.9 million shares from two of its major shareholders.
"The board has carefully evaluated financing options available for the buyback and has taken into consideration the resulting debt leverage of the group, which the board deems to be a prudent and optimal long-term capital structure for TSG," Trans-Siberian Gold said in a statement.
Shares in Trans-Siberian Gold were 2.8% lower at 51.50 pence on Thursday.
Related Shares:
TSG.L