Welcome!

News Feed Item

Robex Announces a Credit Facility and a Private Placement

QUEBEC CITY, QUEBEC -- (Marketwired) -- 05/08/14 -- Robex Ressources Inc. ("Robex" or "the Company") (TSX VENTURE: RBX)(FRANKFURT: RB4) is pleased to announce that the board of directors has approved an agreement in principle to conclude a subscription agreement (the "Subscription Agreement") with African Peak Trading House Limited (the "Trading House") to finance its capitalization by an aggregate amount of CDN$15,000,000 contemplated to take place on or about May 29, 2014 which will also change the Company's international corporate structure. The Trading House will subsequently enter into a CDN$15,000,000 senior non-revolving credit facility through a secured Gold Stream Credit Agreement ("Gold Loan") with the Company's subsidiary Nampala S.A. ("Nampala") to support and finance the capital expenditures for production at the gold mine in Moussala, Nampala, Mali (the "Mine").

On April 3, 2014, the Company announced the completion of the construction of phase 1 of the Mine. In anticipation of upcoming completion of the Mine and the beginning of its production phase, the Company will change its international corporate structure, with a purpose of improving the Company's return on investment and restructuring its indebtedness.

The Company will make a subscription in the capital of the Trading House to fund its operations, as further described hereunder. The required subscription capital of CDN$15,000,000 will originate from a short term advance, without interest, made by Georges Cohen, president and CEO, and a significant shareholder of the Company. The Trading House will in turn offer secured financing to Nampala to restructure its intercompany indebtedness, finance the capital expenditures for the completion and operation of the Mine, support its production phase and for working capital purposes. Nampala will refund the Company a portion of its amount owing of CDN$15,000,000, representing a portion of the advances made by Company for the construction of the Mine. The Company will use these funds to reimburse the short term advance of CDN$15,000,000 made by Georges Cohen to implement the Subscription Agreement.

Under the terms of the Subscription Agreement, the Company will purchase 1,000 Common Shares and 15,000,000 Class B Shares of the Trading House, respectively, at CDN $1.00 per share in a private placement (the "Trading House Private Placement").

On February 28, 2014, the GII Trust was registered in Gibraltar and was created pursuant to a trust deed dated February 17, 2014. The GII Trust will subscribe to 1,000,000 Class A shares of the Trading House at CDN$0.001 per Class A share ("Class A Shares") (the "Trust Private Placement"). The Class A Shares will confer voting rights to the GII Trust and the legal control of the Trading House. The Class A Shares are entitled to a preferential discretionary dividend up to CDN$0.05 per Class A Share (CDN$50,000 in the aggregate) per year.

The Trading House Private Placement is a related party. The Company is relying on exemptions provided under sections 5.5 and 5.7 of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions.

Following the Trading House Private Placement, Company will own all the issued and outstanding Common Shares and all the issued and outstanding Class B Shares of the Trading House. The Company will continue to own its shares in Nampala. The GII Trust will own 1,000,000 Class A Shares of Trading House.

The Trading House will use the subscription proceeds from the Trading House Private Placement to establish, in favour of Nampala, a CDN$15,000,000 senior non revolving credit facility by way of the Gold Loan. The proceeds from the Gold Loan will be used by the Company to the restructure its intercompany indebtedness, fund capital expenditures for the construction and operation of the Mine and for working capital purposes. Under the Gold Loan, Nampala will deliver to the Trading House all of the dore bars extracted from the Mine over a ten years period, in payment of the capital and interest owed under the Gold Loan. The Trading House will sell the dore bars on the international open market and distribute its profits by way of intercompany dividends to the Company. Nampala will be a guarantor under the Gold Loan and will also enter into security agreements to grant liens on its properties and assets to the Trading House in order to secure its obligations under the Gold Loan.

Mr. Cohen stated: "Due to the unstable situation in the North of Mali, it is considered a high risk country with the consequence that medium and long term debts are priced accordingly. By structuring a gold loan, Robex was able to secure long term financing even in spite of the situation in the North of Mali. This provides us with more flexibility to expand and grow our operations in Mali".

Robex Resources Inc. on social networks : Twitter, Linkedin et Viadeo

This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Robex Inc.'s ("Robex") control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavourable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Robex. The forward-looking information is based on the estimates and opinions of Robex's management at the time of the publication of the information and Robex does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.

The TSX Venture Exchange or its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts no liability for the authenticity or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...