Aminex shakes hands on an 8.0m dollar loan facility

Aminex, an exploration company focused on East Africa, has agreed an eight million dollar loan facility with a fund manager by Argo Capital Management, with which the company has had a long standing relationship.

Aminex, an exploration company focused on East Africa, has agreed an eight million dollar loan facility with a fund manager by Argo Capital Management, with which the company has had a long standing relationship.

The loan, which carried a 12.5% coupon (rising to 15% per cent from July 1st 2013), has been taken out to provide working capital, particularly for the company's Tanzanian operations.

The repayment of the loan, due June 30th 2014, is expected to follow the proposed sale of its US assets which is currently under way. If the sale is not made and the proceeds therefore cannot be used to repay the loan, Aminex has agreed to an equity raising.

The facility is secured by fixed and floating charges over the group's assets.

Aminex chairman, Brian Hall, said: "We are very pleased to have completed this financing which will provide valuable working capital for the company's significant projects in Tanzania. These include gas discoveries at Ntorya in the onshore Ruvuma Basin and at Kiliwani North, both of which are close to Tanzania's proposed new gas trunk line, due onstream in late 2014.

"A farm-out process is currently under way to introduce new partners into our Ruvuma Basin joint venture in order to accelerate activity and do justice to this large concession. The campaign to sell the company's US assets has recently recommenced."

Aminex has also agreed to grant warrants to the lender representing 5.0% of the existing issued share capital at 0.06 euro. 32.23m warrants will be issued now and a further 8.71m will be ussied subject to the approval of shareholders in a general meeting.

The share price fell 4.26% to 4.50p by 14:05.

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