1st May 2009 07:00
PAN PACIFIC AGGREGATES PLC
("PPA" or the "Company")
FINANCING, PLACING AND TRADING UPDATE
The announcement of 18 March 2009 stated that the Company's working capital position had been adversely affected and that it had come to an agreement with HSBC to settle the writ outstanding for C$150,000 payable on or before 30 April 2009, subject to certain agreed upon and acceptable conditions. The Company announces that it has agreed to defer the repayment of the C$150,000 payable to HSBC until 14 May 2009.
Following the announcement on 27 March 2009 of the Company's intention to raise up to £400,000 (before expenses) and announcement on 14th April 2009 stating that the necessary authorities were approved, the fundraising is in progress. Until this is completed, the Company will not be in a position to meet the terms of settlement with HSBC and it continues to manage its cash tightly. Should the fundraising not proceed, the Company may need to consider alternative options (if available) to finance the Company to ensure its continued existence. The Board has entered into discussions with a number of potential providers of finance.
The agreed variation to the terms of the secured convertible loan notes issued by the Company to RAB Special Situations (Master) Fund Limited, as mentioned in the announcement of 27 March 2009, will remain conditional until the Company has raised a minimum of £300,000 (before expenses).
Following the completion of the placement, the Board will explore restructuring alternatives in the Company's wholly-owned subsidiary, Pumptown Quarry Inc. to maximise creditor and shareholder value under Canadian jurisdiction. A further announcement will be made should the Board decide to pursue this option.
Following a submission to the City of Abbotsford Council by Pumptown Quarry Inc., a supplemental engineering report is being prepared to support the application which is in its final approval stage to allow for improved access into the quarry and this will be submitted to council shortly.
At Caren Ridge on the Sechelt, the Company has moved into a consultation phase with stakeholders in relation to the Company's proposed working plans. Following this consultation period, the Provincial Government will meet to consider the application for the purpose of approval.
Managing Director William Voaden commented:
"The fundraising is progressing and we are confident it will complete shortly. In the meantime, we are working towards identifying cost savings and managing the remaining cash tightly. We are also in positive discussions with the local council and stakeholders in relation to obtaining improved access to the Pumptown Quarry. Subject to the fundraising being completed, we believe that we can return to production shortly thereafter."
A further announcement will be made as soon as further news is available.
For further information please see the Company's web site, www.panagg.com or contact:
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Pan Pacific Aggregates plc |
Tel: +44 (0) 20 7096 9580 |
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William Voaden |
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Dowgate Capital Advisers Ltd |
Tel: +44 (0) 20 7492 4777 |
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James Caithie / Aaron Smyth |
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VSA Capital Limited |
Tel: +44 (0) 20 7096 9589 |
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Paul Backhouse |
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Lothbury Financial Limited |
Tel: +44 (0) 20 7011 9411 |
|
Michael Padley / Libby Moss |
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