sherlock bay nickel $15m debt underwriting agreeme

SHN - Sherlock Bay Nickel $15m debt underwriting agreement 1/1
SHN - Company Announcement
$gen0
21 September 2004
Part 1/1
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Sherlock Bay Nickel $15m debt underwriting agreement

Sydney - Tuesday - September 21: (RWE Aust Business News) -
Sherlock Bay Nickel Corporation Ltd has reached agreement for the
underwriting of $15 million in senior project debt for the Sherlock Bay
Nickel Project.

The agreement with underwriter Consolidated Byrnes Australia
Funds Ltd requires Sherlock Bay to meet standard funding documentation
requirements and obliges the underwriter to provide a $15 million
finance facility for the project on December 31 if Sherlock Bay has not
secured senior debt with a third-party financier by then.

The underwriter will also provide assistance to Sherlock Bay in
its discussions with potential senior debt providers.

As a result of the underwriting agreement the company says it
can move forward with project development earlier than would otherwise
have been the case.

It anticipates moving to full project development following
completion of the unsecured convertible note issue, scheduled to close
on September 30.

The underwriting fee of 5 per cent of the underwritten amount
($15 million) will be payable by Sherlock Bay through the issue of
ordinary shares at 20c each.

Also, Sherlock Bay will grant the underwriter (or its nominee)
an option to subscribe for $5 million in September 2007 unsecured
convertible notes.

The trust deed in respect of the convertible notes provides for
up to $20 million to be raised under those notes.

The current prospectus offer by the company is in respect of $15
million of that $20 million with the residual $5 million now the subject
of the option agreement.

Shares in Sherlock Bay Nickel rose 0.5c to 21c yesterday.

ENDS