![](http://www.24hgold.com/24hpmdata/articles/img/93410100_image002.gif)
Grand
Gulf Energy Limited
Suite 8, 7 The Esplanade
Mt Pleasant 6153
Western Australia
T +61 (0) 8 9324 3011
F +61 (0) 8 9324 3055
E info@grandgulf.net
www.grandgulfenergy.com
ABN 22 073 653 175
ASX GGE
ASX/Media
Release
18th
Sept 2008
Macquarie Bank Working Capital Facility & Appendix 3B
________________________________________________________________
Grand Gulf Energy Limited (Grand Gulf)
is pleased to announce that it has finalised a Working Capital Facility
Agreement with Macquarie Bank Limited.
The Working Capital
Facility Agreement with Macquarie Bank has a limit of US$50 million with an
initial Borrowing Base of US$2.5 million.
This
facility refinances an existing facility with Macquarie Bank of US$500,000 in
addition to providing a further US$2 million.
Grand
Gulf Managing Director Mr James Trimble said, ?This funding will allow us to
start developing our 26.3% Napoleonville Salt Dome project in Louisiana
and further develop our Oklahoma
oil and gas properties.?
?The
ability of Grand Gulf to have completed this financing despite the current
situation in world financial markets confirms the quality of its assets and
also the advantage of working with a strong financial partner such as Macquarie
Bank? Mr Trimble said.
As
previously foreshadowed Macquarie Bank has now been issued with 45 million
options in Grand Gulf
to be exercised on or before 11th September 2012 at a price of
$0.04.
The Facility amount
shall be limited to a Borrowing Base with the initial Borrowing Base set at
$2,500,000 committed and available for drawdown. Funding will be available on a
pro-rata basis subject to issuance of options with an exercise price of $0.04
and a term of four years from date of issue, as follows;
- Tranche A: $2,000,000
upon the issuance of 45,000,000 options (completed);
- Tranche B: $500,000
upon the issuance of 13,775,000 options;
-
Tranche
C: Up to $47,500,000 upon the issuance of 39,500,000 options at first drawdown
under this tranche and at Macquarie Bank?s sole discretion.
Grand Gulf
will shortly call a shareholders? meeting to approve the issue of the options
above.
Appendix 3B can be
viewed via the following link http://www.grandgulf.com.au/documents/650.pdf
For
further information contact:
For more information visit www.grandgulfenergy.com and sign up for email news.
***
Issued by
Purple Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 9485 1254 Fax: 08 6263
0455
purple@purplecom.com.au