Friday, November 22, 2013 7:11:48 AM
The US$15 million Facility, which was US$10 million when first announced on 24 November 2010, and has been fully drawn down, has now been increased to US$18 million. In addition, the repayment date for all amounts drawn under the Facility has been extended for three years to 24 November 2016. The terms of the Facility remain otherwise unchanged, with funds continuing to be borrowed at an interest rate of LIBOR + 4.5% and with Forum Energy remaining as the guarantor under the Facility.
This increase in the Facility and the extension of its repayment date will continue to assist in funding Forum Energy's working capital requirements in advance of obtaining clarity as regards the ability for the second sub-phase of the SC72 work programme to continue.
The initial lender of the Facility was Philex Mining Corporation ("Philex Mining"). As part of this transaction, Philex Mining has assigned its rights and obligations under the Facility to its subsidiary Philex Petroleum Corporation ("Philex Petroleum"). Shares of both Philex Petroleum and Philex Mining are listed on the Philippine Stock Exchange.
Philex Petroleum is one of the Company's two principal shareholders (holding 36.44% of the Company's issued share capital) and is therefore a related party of the Company. As a result, the increase in the Facility, the extension of its repayment date and the assignment to Philex Petroleum constitute a related party transaction under the AIM Rules for Companies. The independent directors of Forum Energy consider, having consulted with Execution Noble & Company Limited, the Company's nominated adviser, that the terms of the Facility are fair and reasonable insofar as Forum Energy's shareholders are concerned.
Andrew Mullins, Executive Director, commented: "We are pleased to have been able to arrange the increase in the Facility to US$18 million and the extension of its repayment date whilst the other attractive terms of the Facility remain the same. Discussions with our major shareholders, our joint venture partner and our advisors will continue to determine funding arrangements for the full SC72 drilling programme. Further updates will be announced by Forum Energy as and when appropriate."
For further information please contact:
Forum Energy plc
Andrew Mullins
Executive Director & Company Secretary
Tel: +44 (0) 1932 445 344
Execution Noble & Company Ltd (Nominated Adviser & Broker)
John Llewellyn-Lloyd
Harry Stockdale
Tel: +44 (0) 207 456 9191
Or visit Forum Energy's website:
www.forumenergy.com
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