Perth, Dec 4, 2008 AEST (ABN Newswire) - Adamus Resources Limited (ASX:ADU)(CVE:ADU)(PINK:ARLTF) is pleased to announce that it has secured a $5 million convertible loan facility (the Facility) from Macquarie Bank Limited (ASX:MQG)(Macquarie). The key terms and conditions of the facility are summarised below.
- Facility amount of up to $5 million.
- Drawdown under the Facility is at the option of the Company, subject to satisfaction of the Facility conditions precedent, until 28 February 2009 or such later date as may be agreed by Macquarie.
- The Facility will provide working capital for the development of the Company's Southern Ashanti Gold Project.
- Conditions will include Adamus' receipt of any requisite regulatory or shareholder approvals.
- A margin of 4%p.a will be payable over and above the bank bill swap bid rate as quoted on Reuters page BBSY and a Facility fee of 1% of the Facility amount is payable at drawdown.
- The Facility, to the extent that it has not been refinanced as part of a larger project finance facility, is to be repaid in full by 28 November 2010.
- In the event of drawdown under the Facility, Macquarie will receive options to acquire unissued shares in the Company (Options). The number of Options will be calculated by dividing the Facility amount by the exercise price of the Options. The exercise price of the Options will be the lesser of 30 cents or a 50% premium to the ASX volume weighted average price for Adamus shares for the last 20 trading days up to 28 November 2008. The Options will have an expiry date 24 months from the date of issue.
- Adamus will be required to use funds raised on ultimate exercise of the Options to repay any outstanding amounts under the Facility.
- Security for the Facility will include a registered first ranking fixed and floating charge over all of the assets and undertakings of Adamus.
It is intended that the Facility serve as an interim measure until Adamus commits to a full project finance facility to develop its Southern Ashanti Gold Project.
Contact
Mark Bojanjac - Managing Director/CEO
TEL: +61 8 9322 5943
Mark Connelly - Executive Director/COO
TEL: +61 8 9322 5943
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