VI Mining PLC - Corporate Update
RNS Number : 1792S
VI Mining PLC
04 November 2019
 

VI Mining PLC

(the "Company" or "VIM", NEX: VIM)

 

Corporate Update

 

 

Minaspampa and Rosario

 

On 2 February 2018 the Company's wholly owned subsidiary, One-Valley Peru SAC ("OVP"), entered into an acquisition agreement for the purchase of the Minaspampa and Rosario de Belen projects (the "Agreement").  Payment of the consideration was secured by a charge over the whole of the share capital of OVP and the obligations of OVP were guaranteed by the Company.  Consideration of US$42.4 million remains outstanding.

 

On 1 November 2019 the Company was notified by the vendors that they were starting the process of exercising the charge over the shares in OVP under the terms of the Agreement.  A meeting has been arranged with the vendors to discuss the position.

 

Through this process, the Directors anticipate that ownership of the Minaspampa and Rosario de Belen concessions will revert to the vendors.

 

Going forward, the Company will focus on generating cash flows from tolling operations.  A further announcement on these plans will be made in due course.

 

David Sumner, Chairman, commented "I would like to thank the vendors for their patience and understanding as we work together to transfer OVP.  This approach is testament to the good relationship that remains in place.  The Company hopes to explore other projects with the vendors in due course."

 

 

David Sumner Waived Salary

 

In light of the revised asset portfolio, David Sumner has notified the Company that he will waive his entitlement to US$1,609,775 of unpaid and accrued salary from his previous role as Chief Executive Officer. This will result in a credit of the full amount to the statement of comprehensive income in the current financial year.

 

 

Funding

 

As previously announced, Sumner Group Holdings Limited ("SGH") is undertaking a security token offering.  The Company has been informed that, subject to a successful offering, a proportion of the proceeds is planned to be used to re-finance VI Mining through a new SGH debt facility replacing part or all of the current David Sumner loan facilities.  The SGH tokens went beta live on the LDX Exchange on 16 September 2019 and SGH now anticipates that funding for VIM will be available from the proceeds in early 2020.

 

David Sumner has reconfirmed to the Board that he, with the support of SGH, will continue to support the working capital requirements of the Company.

 

 

Novation of Debt from David Sumner to SGH

 

Funding for the Company has to date been provided by David Sumner through a US$10 million facility and a £39 million facility.

 

The US$10 million facility has been fully drawn down and an aggregate of US$2.90 million was converted into equity in December 2017 and March 2018, leaving a balance of US$7.1 million plus interest of US$970,000.

 

The Company has been notified that Mr. Sumner has assigned the US$10 million facility to SGH, the majority shareholder of the Company.  David Sumner is the majority shareholder of SGH.

 

 

CFO Appointment

 

The Company is pleased to announce that Tim Feather LLB, ACA has been appointed as Chief Financial Officer with immediate effect and will join the Board once the required due diligence by the Company's corporate adviser has been completed.

 

Allan Rowley, Chief Executive Officer, commented "I would like to take this opportunity to formally welcome Tim to his new role in VI Mining PLC. His experience will prove invaluable as we ready the company for a reinvigorated growth strategy focusing on tolling in Brazil and Peru."

 

 

 

Contact:

 

VI Mining PLC


Allan Rowley

 +511 475 2363



VSA Capital Limited (NEX Corporate Adviser)


Andrew Raca / Pascal Wiese

020 3005 5000

 

 

 


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