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Robex's Nampala to receive $11.6-million loan
2018-12-07 09:58 ET - News Release
Mr. Augustin Rousselet reports
ROBEX RESOURCES CONCLUDES AGREEMENT OF CAD $11.6M
Robex Resources Inc. has executed an agreement with African Peak Trading House Ltd., which will result in a 7,622,451-euro ($11.6-million (Canadian)) loan being granted to the company's subsidiary, Nampala SA, through a gold stream credit agreement. This will enable Nampala to strengthen its exploration strategy and support the investments required to improve the efficiency of the mine at Nampala.
With the recently closed debt financings, the gold loan, which is similar to the gold loan financing of 2014, will allow Nampala to complete its financing structure with advantageous interest rate on such financing at 5 per cent (compared with 11 per cent in 2014). This transaction also includes the increase of African peak Trading House's capitalization by an aggregate amount of 7,622,451 euros paid by the company on Dec. 6, 2018.
The company's corporate structure, which remains unchanged, is described in more details in the company's most recent management's discussion and analysis for its third quarter ended Sept. 30, 2018, available on SEDAR and on the company's website.
This increase in capital in African Peak Trading House is a related party. The company is relying on exemptions provided under sections 5.5 and 5.7 of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions. The company has not filed a material change report at least 21 days before the closing of the transaction as the terms of the proposed transaction were finalized at the time of closing.
Under the gold loan, Nampala will deliver to the trading house all of the dore bars extracted from the mine over a seven-year period in payment of the capital and interest owed under the gold loan. The trading house will sell the gold bars on the international open market and distribute its profits by way of intercompany dividends to the company.
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