fools gold, page-18

From FML annual Report


" ...Acquisition of Committee Bay resources 50% JV interest.......The settlement was completed on 30 April 2008 with the payment to Committee Bay of A$19 million in cash, the allocation of 140 million Focus Minerals ordinary shares and a A$2 million 8.25% pa Convertible Note maturing on 30 April 2009. The shares issued to CBR have been placed in voluntary escrow until 30 April 2009 ................ CBR has become a substantial shareholder in the Company with an 11.24% interest ........
A$18.65 million debt Facility
As part of the Company’s funding activities, Focus established a debt facility comprising A$18.65 million in Senior and Mezzanine debt with specialist international banking group, Investec Bank (Australia) Ltd. Under the terms of the facility, Focus has entered into forward gold sales commitments for a total of 32,000 ounces at an average gold price of approximately A$990/oz. The forward gold sales contracts require monthly gold deliveries commencing on 31 October 2008 and concluding on 31 October 2009. In addition, Focus has acquired put options for a total of 17,000 ounces of gold at A$850/oz to further protect Perseverance Gold
Project revenues ..........
As part of the debt facility, Focus has issued 40 million call options to Investec to acquire shares in the Company at an exercise price of 6.875c. These options are exercisable by Investec at any time prior to the expiry date of 30 April 2011...."