16th Oct 2009 10:45
UMC Energy plc
("UMC" or the "Company")
Additional Listing /Conversion of outstanding loan
UMC, the uranium exploration company with assets in Madagascar, announces that it has reached agreement with Natasa Mining Limited ("Natasa") in respect of the loan facilities with the Company entered into in February 2008 and March 2008 ("Loan").
As at 31 August 2009 the outstanding balance on the Loan was A$2,832,893.92 (including accrued interest), representing £1,588,686.91 at the current exchange rate of A$:£0.5608. In lieu of repayment of the outstanding balance on the Loan, which is repayable within 60 days of demand by Natasa, Natasa has agreed to convert A$2.4 million (£1,345,920) of the Loan into 213,638,095 new ordinary shares of 0.5p each in the Company ("Ordinary Shares"), equating to a conversion price per share of 0.63p (the "Transaction"). Natasa has agreed to continue to advance funds to UMC in accordance with the March 2008 agreement to meet the Company's working capital requirements, including funds to be expended on the Morondava uranium project.
Accordingly, Natasa will have a beneficial interest in 219,979,895 Ordinary Shares, representing approximately 89.99 per cent. of the Company's issued ordinary share capital as enlarged by the Transaction.
As Natasa is a substantial shareholder in the Company, the Transaction is classified as being related party under the AIM Rules. Mr Chrisilios Kyriakou and Mr Jonathan Reynolds are directors of both UMC and Natasa and have not participated in the Board's deliberations with regard to the Transaction. Accordingly, Roger Shakesby, being the sole independent Director, having consulted with Strand Hanson Limited, the Company's nominated adviser, considers the terms of the Transaction to be fair and reasonable insofar as the Company's Shareholders are concerned. In providing its advice, Strand Hanson Limited has taken into account Mr Shakesby's commercial assessments.
Application has been made for admission of the new Ordinary Shares to trading on the AIM market of the London Stock Exchange. It is expected that admission will become effective and that dealings will commence in the Ordinary Shares on 22 October 2009.
Following the issue of these new Ordinary Shares the Company's issued share capital will consist of 244,444,764 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in Treasury.
Enquiries:
Annie Richards
UMC Energy plc
Tel: 020 7514 1480
Angela Peace
Strand Hanson Ltd
Tel: 020 7409 3494
Related Shares:
UEP.L