Short term loan from Cyrus Capital Partners LP to provide interim funding of security bond to
support issues of mining license for Black Angel mine in Greenland
21/05/2008
Press Release
A&R announces that it is borrowing $1,650,000 from Cyrus Capital Partners LP (Cyrus). The loan, which is repayable in three months, will bear interest at 14% per annum and is subject to an arrangement fee of $150,000.
Cyrus holds 37.5 million warrants at an exercise price of 20p, with an expiry date of 10th July 2010 and is therefore considered to be a related party.
The money will be held in escrow in a deposit account as security for the mine closure bond, which has to be in place before the mining licence can be issued.
Having consulted with the Company's Nominated Adviser, the directors consider that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
- Ends -
Enquiries:
Angus & Ross
plc
Robin Andrews, Chairman 01751 430 988
Nick Hall, Chief Executive 07931 709 053
Fox-Davies Capital 0207 936 5200
Daniel Fox-Davies
Richard Hail
Bishopsgate Communicatons 0207 562 3366
Nick Rome
Landsbanki Securities(UK) Limited 0207 426 9000
Jeff Keeting and Fred Walsh
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