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Metals Exploration raises US$6.4mln as debt restructuring nears

Published: 12:58 08 Sep 2016 BST

Picture of gold and dollars
Debt renegotiations are close to conclusion

Metals Exploration Plc (LON:MTL) has raised an additional US$6.4mln from shareholders and expects to conclude its debt restructuring negotiations later this month.

The Philippines-based miner has been hampered by delays in getting its Runruno mine up to full speed, but gold is now being poured on a weekly basis and a first shipment is planned for this month.

By then, Metals Ex should have finalised a restructuring of its US$83mln debts that will realign repayments with production.

Metals Ex has four major shareholders who account for 87% of its register and all of these subscribed for shares in the latest placing, which was priced at 5p.

Ian Holzberger, executive chairman, said:  “The project is in its ramp up stage and it should achieve design specifications within the next two or three months' period.

“During the month of September 2016, the first gold dore export shipment is eagerly anticipated and will be a precursor to the project realising sustainable cash flow out of operations.”

He added that there were still some final administrative requirements to be completed before this can happen.

Shares jumped 16% to 6.5p.

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