Noventa shares plummet on loan default notice

Shares in AIM-listed tantalum concentrate provider Noventa tumbled as much as 69 per cent on Monday after the group reported that a default had occured on its secured loan.

Shares in AIM-listed tantalum concentrate provider Noventa tumbled as much as 69 per cent on Monday after the group reported that a default had occured on its secured loan.

The company reported that preliminary reassessments of forecast production for 2013 indicated that there had been a significant decrease in production volumes compared to plan.

The group said it would cast doubts over its ability to comply with the terns of a medium-term secured loan entered into in 2012 with members of the group and the lender, Richard Partners Master Limited.

Final production for November 2012 was 5,360 pounds (lbs) contained Tantalum oxide. Production for December 2012 and January 2013 was respectively 1,601 lbs contained Tantalum oxide and 1,642 lbs contained Tantalum oxide.

Problems outside its controlThe group reported that a combination of factors underpinned the low production volumes, adding that some had been outside of its control.

An unreliable electricity supply, adverse weather conditions, new customs regulations delaying the import of goods into Mozambique, and relatively low recovery rates at a new plant were all cited as contributing factors.

Noventa stated that a default had technically occured under its secured loan arising from the failure to provide a certificate in accordance with the terms of a secured loan.

Noventa's share price was down 68.71% to 1.15p at 09:03 on Monday.

MF

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