Aminex PLC - Ruvuma Farm-Out and Corporate Update
Ruvuma Farm-Out and Corporate Update
As announced on
At the Company's request (and entirely without prejudice to ARA's rights under the Loan and the Advance), ARA has agreed that at this stage it will: (a) not issue a demand for immediate repayment of the Loan or declare an immediate default under the Loan; and (b) not insist on its right to demand monthly payment of interest under the Loan and Advance, such interest instead being added, at the Company's request, to the principal amounts repayable.
At the Company's request, ARA has agreed in principle to provide additional funding support to the Company if the Farm-Out is delayed further by advancing part of the interim period costs (which are otherwise only payable to the Company on completion of the Farm-Out), if required (the "Further Additional Advance").
As previously announced, the Company has implemented significant cost reductions including director and employee remuneration waiver and reduction in staff levels to make the Company more resilient during the current downturn. The cost saving initiatives implemented by the Company since 2018 has led to savings of circa
The Company is exercising very tight control over costs and expects the interim period costs payable to the Company in six equal monthly instalments, starting on completion of the Farm-Out (or by way of the Further Additional Advance, if any), will fund the Company until around
As set out in the Notice of AGM issued last week, subject to shareholder approval, the Company proposes to adopt a new share option plan (the "New SOP"). In summary, the Company has asked key employees to sacrifice salary in an effort to reduce employee remuneration and in return issue up to a maximum of 75 million share options to staff and directors under this New SOP.
"With these cost reduction initiatives, the expected completion of the Farm-Out soon, and the continued support of ARA and Eclipse, our cornerstone investor, the Company looks forward to its next stage of development."
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
For further information:
+44 20 3198 8415
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+353 1 679 6363
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+44 20 3781 8331
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This information is provided by RNS, the news service of the
Quick facts: Aminex PLC
Market Cap: £21.68 m
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