Global Minerals Completes Second and Final Drawdown in
$2 Million Loan Financing with Investec Bank (UK) Limited
9/4/2008 9:00:34 AM - Canada NewsWire
VANCOUVER, Sep. 4, 2008 (Canada NewsWire via COMTEX News Network) --
Global Minerals Ltd. (TSXV:
CTG) (OTCBB: GMLFF) (FRANKFURT: DFP) ("Global Minerals" or the
"Company") is pleased to announce that it has closed and completed
the second and final drawdown (US$1,250,000) of the US$2,000,000 convertible
loan facility with Investec Bank (UK) Limited (LONDON: INVP) (JOHANNESBURG:
INP) ("Investec"). The Company completed its initial drawdown of
US$750,000 on August 15, 2008.
The loan will be used by
Global Minerals primarily for expenditures related to its Strieborna polymetallic
project in Slovakia. The proceeds will allow the Company to part finance the
pre-feasibility study and permitting related to the Streiborna project, and to
provide working capital.
The loan will bear interest
at the rate of USD Libor plus 10% per annum, with interest payable quarterly,
in arrears. The loan must be repaid in full upon the earlier of (i) August 15,
2009; (ii) the date of the initial drawdown under a senior project finance
facility proposed to be arranged by Investec for Global Minerals or its
subsidiary; (iii) the closing date of any capital raising by Global Minerals in
excess of US$2,000,000 in any single raising or in aggregate over a period of 6
months, be it by issue of stock or debt. Pursuant to transferable share
purchase warrants issued to Investec on August 15, 2008, the warrantholder
has the right to purchase up to 13,477,334 common shares of Global Minerals at
a price of CDN$0.15 per share until August 15, 2009. Investec as
Warrantholder may also set off the purchase price for the warrant shares
against all or part of the outstanding principal under the promissory note. If
the Company's common shares trade at a price 180%, 200% or 220% greater than
the exercise price of the warrants for 20 consecutive trading days, Global
Minerals will have the option to force exercise of the 25%, 50% and 25% of the
warrants, respectively.
On August 15, 2008,
Investec received an arranging fee of 5% of the principal amount of the loan
payable in cash or, subject to the acceptance of the TSX Venture Exchange, the
equivalent value in the Company's common shares on the earlier of the first
drawdown under the debt facility and one month after signing of the promissory
note for the first drawdown.
The Company has granted
Investec the first right of refusal to arrange the Company's future funding
needs for the Streiborna project.
Investec is located at 2
Gresham Street, London, EC2V 7QP, United Kingdom. For further information,
please go to the Global Minerals profile on the SEDAR website www.sedar.com or contact Investec at +44 20 7597
4000.
About Investec Bank
Investec Commodities and
Resource Finance ("Investec Resources") is an industry focused
specialist finance and investment banking team that forms part of the Capital
Markets division of the Investec Group. As an international team with
representation in Johannesburg, London, Perth and Sydney, Investec Resources'
activities span the debt-equity spectrum, focusing on Precious and Base Metals,
Minerals, Oil and Gas and Emerging and Developed Markets.
The teams provide financing
to junior and mid-tier mining companies that develop, expand or acquire projects
in emerging and developed markets across the globe. They are also able to
advise, implement and execute hedging and structured derivative solutions in
the precious and base metal markets. To support its role in this arena,
Investec Resources is a Category 2 clearing member of the London Metal
Exchange, and member of the London Bullion Market Association and London
Platinum and Palladium Market. It also invests in mining projects at a late
exploration or pre-feasibility study stage. These investments can be taken on a
proprietary basis or through the Blackfish-Investec Resources Special
Situations Fund.
Investec Resources has an
established competitive
advantage as a
result of their significant technical skills, major transactional track record
and their ability to provide total solutions. Investec Resources' partnerships
with other teams in the Investec group result in an entrepreneurial approach to
strategy, creation of unique opportunities, creativity and rapid closure of transactions.
Investec is an
international specialist banking group that provides a diverse range of financial products and services to a niche client base in three
principal markets, the United Kingdom, South Africa and Australia as well as
certain other countries. The group was established in 1974 and currently has
approximately 6300 employees.
Investec focuses on
delivering distinctive profitable solutions for its clients in five core areas
of activity namely, Private Client Activities, Capital Markets, Investment
Banking, Asset
Management and
Property Activities.
In July 2002 the Investec
group implemented a dual listed company structure with listings on the London
and Johannesburg Stock Exchanges. Management and staff own approximately 15% of
the equity share capital of the group.
At 31 March 2008, total
shareholders' equity was (pnds stlg)2.2 billion, third party assets under
management were (pnds stlg)54.2 billion and core loans and advances were (pnds
stlg)12.8 billion. The combined group's current market capitalisation is
approximately (pnds stlg)2.4 billion.
About Global Minerals Ltd.
Global Minerals Ltd. (TSXV:
CTG) (OTCBB: GMLFF) (FRANKFURT: DFP) focuses on the development of advanced-stage,
highly profitable, mid-size ore bodies while continuing to explore for
world-class gold and silver deposits in geopolitically stable countries. The
experienced management
team has
accumulated several exploration projects, operates one producing mine and is
focusing its efforts on the world-class Strieborna silver vein in Slovakia.
Please visit our website www.globalminerals.com
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy of this news release.
SOURCE: Global Minerals
Ltd.
For further information
contact Mr. Derek Sutherland, Head of Investor Relations, at (778) 786-1531, or
email at dsutherland@globalminerals.com.
Copyright (C) 2008 CNW Group. All rights reserved