QUEBEC CITY, Dec. 07, 2018 (GLOBE NEWSWIRE) -- Robex Resources Inc. (“Robex” or “the Company”) (TSX-V: RX / FWX: RB4) is pleased to announce that it executed an agreement with African Peak Trading House Limited (the “Trading House”) which will result in a €7,622,451 (11,6M Canadian dollars) loan being granted to the Company’s subsidiary Nampala S.A. (“Nampala”) through a Gold Stream Credit Agreement (“Gold Loan”) this will enable NAMPALA to strengthen its exploration strategy and support the investments required to improve the efficiency of the mine at Nampala (the “Mine”).
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% (compared to 11% in 2014). This transaction also includes the increase of Trading House’s capitalization by an aggregate amount of €7,622,451 paid by the Company on December 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 3rd quarter ended September 30, 2018, available on Sedar (www.sedar.com) and on the Company’s web site (www.robexgold.com).
This increase in capital in 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 doré bars extracted from the Mine over a seven years 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.
|Ressources Robex Inc.|
|Guillaume Emond, CPA, CMA, VP Admin|
|Augustin Rousselet, CFO et COO|
|Head office : (581) 741-7421|
This press release contains statements that may constitute “forward-looking information” or “forward-looking statements” as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex’s control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavourable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex’s management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.