ENP Newswire - 07 August 2014
Release date- 06082014 - Phosphate exploration and development company Celamin Holdings NL (ASX: CNL) is pleased to announced that it has entered in to a $2 million Working Capital Loan Agreement with African Lion 3 Ltd.
African Lion is a substantial shareholder in Celamin, with a 12.1% interest in the Company.
Celamin CEO Nic Clift said: 'We are delighted to enter into this working capital loan agreement with African Lion. The funds will allow the Company to advance the first phase of the Bankable Feasibility Study at the Chaketma Project. We value the continued support of African Lion, and their commitment to our goal of developing Chaketma into a large scale, high grade phosphate mining operation.'
The terms of the loan agreement enable the Company to draw down up to $2 million from AFL to meet financial obligations for the Chaketma Phosphate Project in Tunisia, operating costs and for general working capital needs. The loan agreement provides for the repayment or set off of the amounts drawn down under the loan by undertaking a capital raising.
Otherwise the loan is repayable by 31 December 2014, subject to extension at the discretion of AFL. There is a commitment fee of 5% and interest at 10% per annum payable on the loan. Rollover of the loan beyond December 2014 and events of default attract a rollover fee of 5% and a 20% rate of interest. A security interest is required to be granted to AFL by 17 November 2014 which would require shareholder approval if the loan is not converted or repaid beforehand. Celamin Limited, the holder of Celamin's interest in the Chaketma Phosphate Project, has guaranteed the loan.
New Board Appointment
The Company is also pleased to advise that Tim Markwell of African Lion will join the Celamin board as a Non-executive Director with immediate effect. Tim is a qualified geologist with 20 years experience in the resource sector, including senior technical roles with BHP Billiton, Golder Associates and Minara Resources. He has specific expertise in resource assessment and was involved in feasibility studies for a number of Australian resources projects.
Tim joined African Lion in February 2007. Prior to this he held roles as a resources/investment analyst with a broking firm and then a listed investment fund. He graduated with an honours degree in geology from the University of Western Australia in 1993, and has a Graduate Diploma in Applied Finance and Investment from FINSIA.
Chief Executive Officer
Celamin Holdings NL.
Tel: +61 (0)3 9692 7222
About Celamin Holdings NL
Celamin is an ASX listed mineral resources company (ASX: CNL) focused on the exploration and development of the Chaketma Phosphate Project in Tunisia. The project comprises six prospects over a total area of 56km2. Celamin holds the Chaketma Phosphate Permit with its Tunisian partner Tunisian Mining Services (TMS).
The project currently has a total JORC compliant Inferred Resource of 130Mt @ 20.5% P2O5. The Resources inventory comprises a JORC compliant Inferred Resource of 93Mt @ 20.3% PO at the Gassa Kebira prospect, and a JORC compliant Inferred Resource of 37Mt @ 21% PO at the Kef El Louz North prospect. Only drilling at these two prospects is included in the current Resource statement
The Kef El Louz prospect is the largest of the prospects within the Chaketma project area. It is approximately six kilometres from north to south, and covers an area of more than three square kilometres. Mapping, trenching and drilling at the north-western corner of the Kef El Louz prospect has confirmed that this area has the potential to meet grade, as well as metallurgical and strip ratio criteria.
Gassaa Kebira is the northernmost prospect. It has an elongate shape and spans approximately 2.6km north-south and 0.9km east-west, over a surface area of 2.36km2. Celamin is focused on completing a Definitive Feasibility Study at the Chaketma Project as its next stage in the project's development. Ongoing exploration at the project consists of mapping, drilling and channel sampling across all prospects - including the Gassa Kebira, Sidi Ali Ben Oum Ezzine, Kef EL Louz and Douar Ouled Hamouda prospects.