Market Update – Bank Debt TransferFurther to its previous...

Market Update – Bank Debt Transfer
Further to its previous announcements, Territory Resources Limited (ASX: TTY – “Territory” or “the
Company”) is pleased to advise that it has executed an agreement with its financiers, the hedge book
facility provider (“Bank”) and Noble Resources Limited (“Noble”), for the transfer of the Company’s
Bank debt to Noble (“Transfer Agreement”).
Settlement of the transfer is scheduled to take place today. The Transfer Agreement will result in the
consolidation of all of the Company’s debt to Noble, its major shareholder.
Under the terms of the Transfer Agreement, Noble has agreed to purchase two short term loans
currently totalling A$17.6 million owed by Territory to the Bank, together with the Bank’s interest in
securities relating to those loans.
The Noble Loans (including the loans which Noble has acquired from the Bank) are currently secured
by a fixed and floating charge over Territory’s assets, a mortgage over its shares in key subsidiaries
and a mining tenement mortgage over its Frances Creek mining leases.
The loans are also secured by a fixed and floating charge over the assets of Territory Iron Pty Ltd − a
wholly owned subsidiary of Territory − and a guarantee and indemnity from Territory Iron Pty Ltd,
which guarantees the performance of Territory’s obligations to the Bank and Noble.
These securities were held subject to a Security Trust Deed for the benefit of the Bank and Noble.
Under the terms of the Transfer Agreement, the Security Trust Deed has terminated and Noble now
holds these securities in its own right (including the acquired Bank’s interest in these securities).
Noble Debt Restructure
Noble has provided the Company with an extension to the repayment date of its loans until 5pm on
19 October 2009 to facilitate continuing discussions regarding a restructure of the ongoing Noble debt
arrangements.
As noted previously and due to the confidential and ongoing nature of the transaction, the Company’s
securities must remain in suspension until there is a formalisation of the continuing debt arrangements
with Noble and until the Company has released its 2009 full year financial accounts. This will ensure
that the Market is fully informed regarding the Company’s financial position prior to the recommencement
of trading.
- ENDS -
Released by: On behalf of:
Nicholas Read Andrew Simpson
Read Corporate Chairman
Telephone: +61-8 9388 1474 Territory Resources Ltd
Mobile: 0419 929 046 Telephone: +61-8 9483 5100