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Metals Exploration turning corner at Runruno; makes first sale

A further waiver has been obtained from the lenders to delay the principal sum of US$15mln

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The miner has made its first gold sale, it said.

Things are finally heading in the right direction at Philippines-focused gold miner Metal Exploration plc (LON:MTL), which has made its first gold sale from the Runruno mine.

Gold doré was produced during commissioning activities and refined.

Mining and processing operations are now ramping up soundly, the group added. In the plant, processes are being ramped up progressively to design throughputs.

The documents finalising a rescheduling of the debt facility is nearly complete and it is planned that the agreement will be inked before the end of 2016, it added.

A further waiver has been obtained from the lenders to delay the principal sum of US$15mln, which had been previously due on June 30 and is to be repaid on the earlier of 31 December 2016, or on successful rescheduling.

Earlier this month, the firm arranged a further US$10.3mln (£8.4mln) of equity finance while debt rescheduling talks continued.

Runruno has a US$75mln debt and $8mln cost overrun facility.

House broker SP Angel said: "The sale of gold and the cash flow from this sale are an important step in development of the mine and the settling of its debt restructuring."

Shares nudged 2.22% higher to 5.75p.

 

Quick facts: Metals Exploration PLC

Price: 1.5 GBX

AIM:MTL
Market: AIM
Market Cap: £31.07 m
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