Barclays Capital Appointed Project Finance Adviser
Announced by: AIM Announced on: 08/09/2005 12:27:34 Words: 2036 Status: Not market sensitive (N) View original PDF
Appendix 5B
Barclays Capital Appointed Project Finance Adviser
Announced by: AIM Announced on: 08/09/2005 12:27:34 Words: 2036 Status: Not market sensitive (N) View original PDF
Appendix 5B
Barclays Capital Appointed Project Finance Adviser HIGHLIGHTS · Barclays Capital, the investment banking division of Barclays Bank PLC ("Barclays") is appointed as project finance adviser for the financing of the Perkoa Zinc Project ("Project") · Barclays is one of the world's leading investment banks with a focus on debt and risk management and a renowned mining and metals specialist with significant experience arranging the financing of base and precious metal projects · This relationship will provide significant support for advancing the development of the Perkoa Zinc Project AIM Resources Ltd ("AIM Resources" or "the Company") (AIM: AIMR ; ASX: AIM) is pleased to announce that Barclays Capital, the investment banking division of Barclays Bank PLC, has been appointed to provide advice and services in connection with the financing of the Perkoa Zinc Project in Burkina Faso, West Africa (the "Project"). Barclays Capital will provide these services through their Mining & Metals team. "We are delighted to appoint an adviser of the calibre of Barclays Capital. This reflects the development of Perkoa as a significant zinc mining project. AIM Resources is using leading mining, social and environmental consultants to conduct its bankable feasibility study on Perkoa and now has one of the world's leading mining finance groups assisting the Company in the co- ordination of the equally important financing aspects of the study," said Mr Marc Flory, AIM Resources' Managing Director. "Barclays Capital is one of the world's leading investment banks with a focus on debt and risk management. The Mining & Metals team assists a wide variety of clients throughout the global mining industry and is delighted to be working with AIM Resources to develop the high grade Perkoa zinc deposit," said Mr Gerard Holden, Global Head of Mining & Metals, Barclays Capital. Barclays, in its capacity as Adviser, will work with the AIM Resources team in advancing the Project with the aim of securing finance for the construction and commissioning of the future zinc mining and processing operation. The Engagement has been split into two phases that reflect the different activities necessary to ultimately secure funding for the Project.
ASX ANNMOUNCEMENT 8TH SEPT
"African Focused Resource Company"
AIM RESOURCES LIMITED A.C.N. 009 193 980 Level 5 Angel Place 123 Pitt Street Sydney NSW 2000 t 61 2 9222 9444 f 61 2 9222 9477
AIM Resources Limited is listed on the ASX with the symbol "AIM" and on the Alternative Investment Market with the symbol "AIMR" Continued... 2
Phase1: Commencement of Engagement through finalisation of bankable feasibility study and structuring of debt package During Phase 1 Barclays Capital will assist the company in a number of areas including: · Familiarise itself with all matters pertaining to the Project including technical, environmental and social, legal and regulatory, political and financial issues · Determine the key risk criteria that the Project will face and advise on risk mitigation strategy · Review markets and financial instruments that are suitable and advise AIM Resources on the optimal financing structure · Facilitate and coordinate the marketing of the Project to potential financiers including commercial lenders, Export Credit Agencies and multi/bi-lateral institutions Phase 2: Financing Phase 2 will commence when Barclays Capital and AIM Resources both regard the Project to be sufficiently advanced from a technical, environmental, regulatory and legal perspective to support a financing in the international debt markets. During Phase 2, Barclays Capital will assist the company in a number of areas including: · Finalise with AIM Resources the preferred debt structure including market, tenor and indicative terms · Discuss with AIM Resources and finalise a short list of institutions, including commercial banks and multi/bi-lateral agencies to be approached to act as underwriters of the financing · Assist in the preparation of an information memorandum, which will be used to market the Project to the financial community · Assist, together with AIM Resources' legal advisers, in the finalisation of documentation and funding for the Project. FEES
In consideration of Barclays accepting and carrying out the engagement, AIM Resources agrees to pay Barclays the following amounts: · 10,000,000 non-transferable warrants in AIM Resources at the Strike Price of £0.025 valid for 5 years · The granting of an additional 6,500,000 non-transferable warrants (the "Additional Warrants") to Barclays Capital in the common stock of AIM Resources at the Strike Price of £0.025 valid for 5 years
Additional Warrant Exercise Restrictions: · 3,500,000 of the Additional Warrants will be available to be exercised on any day following the day when the 5 day average closing share price of AIM Resources is greater than or equal to the Strike Price plus £0.02 · 3,000,000 of the Additional Warrants will be available to be exercised on any day following the day when the 5 day average closing share price of AIM Resources is greater than or equal to the Strike Price plus £0.04 AIM RESOURCES STOCK EXCHANGE A.C.N. 009 193 980 ANNOUNCEMENT 3
Barclays is entitled to certain additional fees which are, for the most part, contingent upon the successful closure of financing for the Project.
Commenting today on the engagement of Barclays Capital, Marc Flory, CEO of AIM Resources, said:
"The agreement with Barclays gives AIM Resources the significant support of one of the world's leading mining finance group, as we progress with the completion of the BFS on the Project."
FURTHER INFORMATION Marc Flory Gerard Holden Managing Director Managing Director AIM Resources Ltd Barclays Capital Tel: +61 (0)2 9222 9444 Tel: +44 (0)20 7773 0336
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