23rd Nov 2005 07:01
ZincOx Resources PLC23 November 2005 ZincOx Resources plc finalises mandate for the financing of the Aliaga Zinc Recycling Project in Turkey 23 November 2005 ZincOx Resources plc (ZOX) has, since its update announcement on 11 November2005 in relation to the Aliaga Zinc Recycling Project in Turkey ("the AliagaProject"), entered into a mandate with Investec Bank (UK) Limited ("Investec")to arrange and conditionally underwrite project debt for the development of theAliaga Project. Investec is one of South Africa's leading banks with significant experience inthe arrangement and provision of development loans for projects in the miningindustry. Investec has made a preliminary assessment of the processingtechnology to be employed at Aliaga and, based on this and ZincOx's revised cashflow models, it is envisaged that the project finance loan facility of US$30million will cover about two thirds of the capital required for the developmentof the project and that the loan will be repayable over seven years. Thecondition includes legal due diligence, revue of the feasibility study andInvestec final internal approval. Investec will be paid a mandate fee of 400,000 equity warrants convertible intoordinary shares in the capital of the Company for a period of three years, at aconversion price of £2. A further 300,000 warrants will be awarded upon theprovision of the loan. These warrants will be for a period of three yearsexercisable at a price representing a 133% of the price of the shares at thetime the loan agreement is finalised. In addition, a fee of 2.5% of the amountof the loan will be payable at the time of the first draw down. In the eventthat Investec do not provide this project finance, the original warrants will becancelled. Investec will shortly commence a detailed evaluation of the project so that theprovision of the development loan can be put in place soon after the completionof the detailed feasibility study by S.A. SNC-Lavalin Europe B.V., scheduled forMarch 2006. Commenting on the announcement, Andrew Woollett, the Managing Director ofZincOx, said "I am delighted to have Investec working with us and we expect therelationship established for Aliaga to lead to their involvement in othersimilar projects elsewhere in the world. Investec's willingness to study theproject even before the feasibility study is completed should enable the projectdevelopment to progress without delay." For more information please contact: Andrew Woollett Leesa Peters / Pam SpoonerZincOx Resources plc Conduit PRTel: +44 (0) 1276 455700 Tel: +44 (0) 20 7618 [email protected] [email protected] www.zincox.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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