Ann: US$ 20M Funding Facility Secured, page-11

US$ 20M Funding Facility Secured

Consolidated Tin Mines Limited (ASX: CSD) (Company) is pleased to advise that it has entered into a formal agreement with Beijing Huacheng Dadi Investments Limited (a Beijing based company) to secure a loan guarantee facility of Twenty Million US Dollars (US$20M). Beijing Huacheng Dadi will provide the Company with a guarantee to facilitate a US$20M loan from a Chinese Commercial Bank.

Details of the loan and guarantee are set out below:‐

•   Loan Term: 2 years
  
  
•   Interest for the Bank loan: expected to be fixed at 4% per annum
  
  
•   Guarantee fee: US$350,000 per quarter
  
  
•   Security: The guarantee will be secured by way of a general security against the
  
  Company’s assets.
  The Company will issue 200M options that can be exercised within two years at AUD$0.10c.
  
  (Subject to shareholder approval)
  
  The funding will be made available following Settlement of the Snow Peak Mining Pty Ltd (SPM) / CSD Asset Sale Agreement (ASA) the details of which are set out in the Company’s notice of meeting for the general meeting held on 1st December 2014 (Meeting). Note: The Company is required to hold another general meeting as certain of the shareholder approvals received at the Meeting have now expired. Settlement of the ASA is tied to establishing funding and receipt of shareholder approvals that are required due to delays in settlement. Now that funding has been secured, a notice of meeting to seek the required shareholder approvals will follow shortly.
  
  The funding will meet the Company’s working capital requirements, plus acquisition of new assets and equipment, the continued development of existing assets, and for any other purpose as agreed from time to time between the Company and the lender.
  
  This funding facility will allow the Company to consolidate debt that will be accepted by the Company as part of the ASA and also allow the Company to implement mining expansion plans within the highly prospective exploration projects that will be acquired from SPM, plus continue tin project development and other diversification opportunities.