12:48:43 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Tirex Resources Ltd
Symbol TXX
Shares Issued 95,130,790
Close 2015-01-23 C$ 0.30
Market Cap C$ 28,539,237
Recent Sedar Documents

Tirex Resources agrees to extend maturity date on loans

2015-01-26 17:09 ET - News Release

Mr. Bryan Slusarchuk reports

TIREX RESOURCES REACHES AGREEMENT WITH EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) TO EXTEND MATURITY DATE OF CONVERTIBLE LOANS

Tirex Resources Ltd. and the European Bank for Reconstruction and Development (EBRD) have agreed, pursuant to an amendment agreement and subject to satisfaction of certain conditions, to extend the maturity date of Tirex's six-million-euro convertible loans to Feb. 26, 2016. The loan bears interest at the European Union interbank offered rate (Euribor) plus 1.5 per cent. (As a point of reference, Euribor is currently less than 0.50 per cent.)

The European Bank for Reconstruction and Development fosters transition to market economies in countries from Central and Eastern Europe to central Asia and the southern and eastern Mediterranean. Since the EBRD's establishment in 1991, the bank has grown to be the largest financial investor in its region of operations. The EBRD is owned by 64 countries, the European Union and the European Investment Bank. The EBRD's very strong capital position, prudent financial management, ample liquidity and strong shareholder support underpin the EBRD's AAA/Aaa/AAA (stable) credit rating.

The EBRD is one of the most active financiers of the private sector in Albania. Its main areas of focus are supporting small production enterprises, supporting the financial sector, developing natural resources and improving infrastructure. The bank is also engaged in policy dialogue with the Albanian government, with the potential to invest in key public sector projects, along with the implementation of numerous donor-financed projects in the country.

Tirex has called an extraordinary general meeting of its shareholders to ratify the amendment agreement, to approve the issuance to EBRD of four million bonus shares as consideration for the extension and to approve any potential control position which may result upon EBRD's exercise of its conversion rights under the convertible loan agreement with the company. Meeting materials are posted on the company's website and available on SEDAR.

Pursuant to the convertible loan agreement, the EBRD (with an address of One Exchange Square, London, EC2A 2JN, United Kingdom) has the right (conditional upon satisfaction of the conditions set out therein) to convert the outstanding loan including accrued interest into common shares of the company at a conversion price of 45 cents per common share, as a result of which, as of Jan. 13, 2015, it would hold up to approximately 21,306,446 common shares of the company, which, together with the four million bonus shares it is entitled to receive pursuant to the amendment agreement, would represent 21.01 per cent of the issued and outstanding common shares of the company (based on there being 95,130,790 common shares of the company in issue). As at today's date, the EBRD has not converted any part of the loan and owns no common shares in the capital of the company. No other persons currently act jointly or in concert with the EBRD.

The EBRD is acquiring the securities for investment purposes. Depending on market conditions and other factors, the EBRD may from time to time acquire and/or dispose of securities of the company or continue to hold its current position. A copy of the early warning report required to be filed with the applicable securities commissions in connection with the extension of the convertible loan and issuance of the bonus shares will be available on SEDAR and can be obtained by contacting Viktoria Melohina at 44-20-7338-8467. Certain portions of this press release are being issued pursuant to National Instrument 62-103 -- the Early Warning System and Related Take-Over Bid and Insider Reporting Issues.

We seek Safe Harbor.

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