8 December 2009 - London: Further to the Company's announcement on 1
December 2009, European Nickel PLC ("European Nickel" or the
"Company") (AIM, PLUS: ENK) confirms that Endeavour Financial
Corporation ("Endeavour") has signed an amendment to the original
secured Bridging Loan Facility Agreement ("the Facility") to increase
the Facility by US$1 million to US$5 million and to extend its
maturity date to 1 March 2010.
The Company has agreed to a 2% per month extension fee, payable on
maturity in respect of the original Facility amount. In connection
with the Facility amendment and in addition to the existing warrants
as per the announcement on 8 July 2009, Endeavour has also been
granted 6.5 million additional warrants, 4 million warrants at a
price of 8 pence and 2.5 million warrants at 9 pence, all of which
are exercisable over a period of three years. The coupon on the
Facility is 10% per annum.
In addition Endeavour has been appointed to provide financial
advisory services to the Company and in connection with this
appointment, the Company has granted Endeavour six million warrants
at 9 pence, exercisable for a period of three years.
Update on the Chinese Financing Framework Agreement
Jiangxi Rare Earth and Rare Metals Tungsten Group Company Limited
("JXTC") continues to progress the approval process for its US$20
million equity investment in the Company's �aldag project through the
various provincial government departments. JXTC has advised European
Nickel that provincial government approval of the JXTC investment is
also subject to the receipt of an export credit agency letter of
intent. This process is now expected to be completed during the first
quarter of 2010.
On the project debt financing side, following China Tianchen
Engineering Corporation's ("TCC") application for credit guarantee
insurance to the Government backed export credit agency providing the
cover for the debt facility, a letter of interest has been received
which confirms the process is now fully underway. An expression of
interest has also been received from an institution managing the
investment of a US$43 billion government backed programme, which is a
further step in the credit guarantee insurance process. The next
step is to receive a formal letter of intent, which is now expected
during the first quarter of 2010.
Simon Purkiss, Managing Director said "Endeavour's ongoing support
while we make progress on the Chinese financing is appreciated. The
�aldag project is ready to start construction and the inherent value
of our low cost heap leach technology is recognised by Endeavour. We
will continue to update the market as we make further progress
towards the completion of �aldag's financing."
Neil Woodyer, CEO of Endeavour said "We believe in European Nickel's
business and will continue to support European Nickel in all areas of
its strategic development."
For more information, please visit www.enickel.co.uk or contact:
Simon Purkiss or Andrew Lindsay, European Nickel
Tel: +44 20 7290 3130
Mike Jones or Andrew Chubb, Canaccord Adams
Tel: +44 20 7050 6500
Alex Buck, BuckBias
Tel: +44 7932 740 452
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