Further Re: Endeavour Loan Extension and Increase
(Thomson Reuters ONE) - 8 December 2009 - London: Further to the Company's announcement on 1December 2009, European Nickel PLC ("European Nickel" or the"Company") (AIM, PLUS: ENK) confirms that Endeavour FinancialCorporation ("Endeavour") has signed an amendment to the originalsecured Bridging Loan Facility Agreement ("the Facility") to increasethe Facility by US$1 million to US$5 million and to extend itsmaturity date to 1 March 2010.The Company has agreed to a 2% per month extension fee, payable onmaturity in respect of the original Facility amount. In connectionwith the Facility amendment and in addition to the existing warrantsas per the announcement on 8 July 2009, Endeavour has also beengranted 6.5 million additional warrants, 4 million warrants at aprice of 8 pence and 2.5 million warrants at 9 pence, all of whichare exercisable over a period of three years. The coupon on theFacility is 10% per annum.In addition Endeavour has been appointed to provide financialadvisory services to the Company and in connection with thisappointment, the Company has granted Endeavour six million warrantsat 9 pence, exercisable for a period of three years.Update on the Chinese Financing Framework AgreementJiangxi Rare Earth and Rare Metals Tungsten Group Company Limited("JXTC") continues to progress the approval process for its US$20million equity investment in the Company's ÿaldag project through thevarious provincial government departments. JXTC has advised EuropeanNickel that provincial government approval of the JXTC investment isalso subject to the receipt of an export credit agency letter ofintent. This process is now expected to be completed during the firstquarter of 2010.On the project debt financing side, following China TianchenEngineering Corporation's ("TCC") application for credit guaranteeinsurance to the Government backed export credit agency providing thecover for the debt facility, a letter of interest has been receivedwhich confirms the process is now fully underway. An expression ofinterest has also been received from an institution managing theinvestment of a US$43 billion government backed programme, which is afurther step in the credit guarantee insurance process. The nextstep is to receive a formal letter of intent, which is now expectedduring the first quarter of 2010.Simon Purkiss, Managing Director said "Endeavour's ongoing supportwhile we make progress on the Chinese financing is appreciated. Theÿaldag project is ready to start construction and the inherent valueof our low cost heap leach technology is recognised by Endeavour. Wewill continue to update the market as we make further progresstowards the completion of ÿaldag's financing."Neil Woodyer, CEO of Endeavour said "We believe in European Nickel'sbusiness and will continue to support European Nickel in all areas ofits strategic development."For more information, please visit www.enickel.co.uk or contact:Simon Purkiss or Andrew Lindsay, European NickelTel: +44 20 7290 3130Mike Jones or Andrew Chubb, Canaccord AdamsTel: +44 20 7050 6500Alex Buck, BuckBiasTel: +44 7932 740 452---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 08.12.2009 - 08:00 Uhr
Sprache: Deutsch
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