KBL Investment, page-4

Still working my way through the document. Some media article are starting to come through.

Kidman takes on KBL debt


11TH NOVEMBER 2014    BY: ESMARIE SWANEPOEL


PERTH (miningweekly.com) – ASX-listed Kidman Resourceshas become a major shareholder and the owner of fellow-listed KBL Mining’s principal secured loan facility, taking over some A$12.6-million debt owed by KBL, due in March next year.

The debt was acquired from KBL shareholder Capri Trading through a subsidiary company, and was secured against all of KBL’s assets, including its operating Mineral Hill base metals mine, in New South Wales, and its Sorby Hillslead/silver deposit, in Western Australia.

Kidman told shareholders on Tuesday that as part of the loan acquisition, the company also inherited a 9.7% equity stake in KBL, and would consider selling this shareholding at an appropriate time.
Kidman would undertake note issue for A$12.6-million to Capri, with an initial term up until the end of March next year, with no interest payable. At that time, the note would either be repaid or Kidman had the right to extend it on commercial terms.

Kidman would also re-assign the original security by providing a change over the shares in the Kidman subsidiary company, which would issue the notes back in favour of Capri.

Furthermore, Kidman would acquire the 9.7% stake in KBL by issuing some 22.24-million of its own shares to Capri, with the share issue deferred until the end of March net year, and subject to shareholder approval.
If KBL repaid the loan in full on or before the settlement date, or at the election of Kidman, the respective share issue would be reversed.

Kidman MD Martin Donohue said that the company would now enter into discussions with KBL regarding an update on the Mineral Hill production profile, and would query the reasons for production at the operation declining over recent quarters.