DGAP-News: ICHOR Coal N.V. / Key word(s): Bond
ICHOR Coal N.V.: IchorCoal converts corporate bonds into equity
01.08.2014 / 15:54
---------------------------------------------------------------------
IchorCoal converts corporate bonds into equity
- Bonds with a total value of EUR 33 million will be converted into
shares
- Approval of the shareholders already obtained
- "Transaction strengthens our balance sheet and testifies to the
confidence of investors"
Berlin, 1 August 2014: IchorCoal NV, a mineral resource company
specialising in investments in coal production, is converting corporate
bonds totalling EUR 33 million that were issued in June and October 2013
into new shares of the company. The transaction will be completed in early
August and will significantly strengthen the equity base of IchorCoal.
"Furthermore, we consider the approval given by the shareholders to be an
expression of confidence in our company," says Nonkululeko Nyembezi-Heita,
the CEO of IchorCoal.
The company had issued the corporate bonds in 2013 with a volume of up to
EUR 40 million and had placed EUR 35 million mainly with institutional
investors. The proceeds were used at the time to raise IchorCoal's stake in
its South African participation Mbuyelo Coal and to intensify the ramp-up
of Vunene Mining. Both tranches carry an interest rate of 6.5 % and mature
in May 2015. The conversion of the bonds into shares was approved by the
shareholders at the Extraordinary General Meeting (EGM) held on 27 March
2014.
Any remaining bondholder who wishes to exchange its corporate bonds at the
same terms can instruct his depository bank to deliver the bonds to the
deposit account of the issuer with the tender agent.
This conversion of debts into equity significantly improves IchorCoal's
balance sheet. In addition, the company also saves considerable interest
payments. "This transaction gives us additional room to pursue
value-enhancing acquisitions when the opportunity arises and to further
develop IchorCoal into a significant mid-tier coal producer on the South
African market," explains Nonkululeko Nyembezi-Heita.
The Management Board
About IchorCoal N.V.
IchorCoal N.V. is an internationally operating mineral resource company
specialising in investments in coal production. The company possesses its
own coal resources and sells the produced coal on local and international
markets. It currently holds substantial equity positions in several South
African mining companies. IchorCoal is headed by its CEO Nonkululeko
Nyembezi-Heita, COO Andries Engelbrecht and CFO Sebastian Giese.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected mining and associated costs, statements relating to estimates
of, and increases in, production, cash flows and values and other
statements which are not historical facts. When used in this document,
words such as "could," "plan," "estimate", "expect", "intend", "may",
"potential", "should" and similar expressions are forward-looking
statements. Although IchorCoal believes that its expectations reflected in
these forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual results
will be consistent with these forward-looking statements. Important factors
that could cause actual results to differ from these forward-looking
statements include the possibility that the Company's projects will
experience technological and mechanical problems, that geological
conditions in the reservoir may not result in commercial levels, that
changes in product prices can have a material impact and that IchorCoal
fails to raise sufficient capital to adequately fund its activities.
Contact:
Ichor Coal N.V.
An der Wuhlheide 232, 12459 Berlin
Tel.: +49 30 65 66 81 60
Fax: +49 30 65 66 81 15
info@ichorcoal.com
www.ichorcoal.com
Thomas Luber
NewMark Finanzkommunikation
Zum Laurenburger Hof 76, 60594 Frankfurt
Tel.: +49 69 94418069
Mobile: +49 171 8311216
Thomas.luber@newmark.de
---------------------------------------------------------------------
01.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
280486 01.08.2014
DGAP-News: ICHOR Coal N.V.: IchorCoal converts corporate bonds into equity
| Source: EQS Group AG