Ann: NMG reiterates support for Zhongrun transact, page-36

re: Ann: NMG reiterates support for Zhongrun ... Resolute Mining fine tunes financing offer to Noble
Tuesday, October 30, 2012 by Bevis Yeo


Resolute Mining (ASX: RSG) has made changes to its alternative A$85 million financing offer to Noble Mineral Resources (ASX: NMG) in response to concern about the lack of immediate funding certainty.

The offer now incorporates a US$15 million unsecured short term debt facility that will be available for immediate draw down if the offer is accepted.

This is effectively an advance on the US$20 million guarantee originally proposed by Resolute, which was intended to facilitate further draw down under Noble’s existing secured debt facility with Investec.

Ina addition, Resolute confirmed that interest on the convertible notes for its offer would be capitalised for the first year of the three year term.

Noble had last Friday reiterated its support for the proposed investment from Chinese private investment group Zhongrun saying there were a number of fundamental concerns regarding the unsolicited and incomplete proposal put forward by Resolute.

This contrasted with the immediate cash available from the first tranche of Zhongrun’s A$84.7 million funding.

Noble added that Zhongrun’s proposal would see it ungeared, unhedged and fully funded through the Bibiani project ramp-up to cash-flow positive production.


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