Print   



8 July 2009

Target Resources plc ('Target' or the 'Company')

Trading Update and Loan Agreement 

Target Resources plc (AIM: TGT), the alluvial diamond and gold mining company operating in Sierra Leone, makes the following update to the market. 

 

The Company announces that is has reached agreement to defer a number of major periodical payments, including the interest payment falling due at the end of June 2009 (the 'Interest Payment') to its principal lender which has been agreed to be deferred for at least six months. 

In order to ensure the Company has sufficient cash resources to cover the Directors' anticipated costs and liabilities of the business to the end of October 2009, Nissim Levy and Yair Ziv, Managing Director and Finance Director of the Company respectively, have together and separately granted the Company a loan facility of up to $300,000 ('the Loan'). 

The Loan, which may be drawn down in whole or in part, is unsecured, carries no interest and is repayable at the decision of the Directors of the Company.

The Loan is classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the Directors (with the exception of Mr. Levy and Mr. Ziv, being classed as related parties), having consulted with the Company's nominated adviser, Arbuthnot Securities Limited, consider that the terms of the Loan are fair and reasonable insofar as the Company's Shareholders are concerned.

The Board continues to look at options to secure a viable future for the Company.

A further announcement will be made in due course.

- ENDS -

Enquiries:

Target Resources plc              020 7258 2300

Yair Ziv, Finance Director       www.target-resources.co.uk

Nominated Adviser and Broker

Arbuthnot Securities               7012 2000

John Prior

Ed Burbidge

About Target 

• Target is an alluvial diamond mining and exploration company operating in Sierra Leone.

• Target is among the first large scale mining ventures to be established in Sierra Leone since the end of the civil war in 2002.

• The Company has 4,263 acres (17.25 Sq km) under mining leases in the rich diamond and gold area of Kono, which is recognised as the most productive area for diamond mining in Sierra Leone.

• The Company has Exclusive Prospecting Licences for Gold, covering 520 sq km in the Alluvial Gold area in the Tonkolili district and for Diamonds, covering 254 sq km in Kenema District, known for its 'fancy' diamonds.

Target Resources Plc 

16th Floor,  Marble Arch Tower, 55 Bryanston Street London, W1H 7AA 

Tel +44 (0)20 7258 2300, Fax +44 (0)20 7258 2321 

Email:  info@target-resources.co.uk

Web: www.target-resources.co.uk

Registered in England and Wales, Company No 5566717

ENDTSTEANXPESENEEE