UFG, AngloGold up Trans-Siberian Gold stakes by converting loans into equity
MOSCOW. Jan 31 (Interfax) - UFG Asset Management and AngloGold Ashanti (AGA) are increasing their stakes in Trans-Siberian Gold (TSG) plc by exercising options to convert $4.8 million in loans into TSG shares, the company said in a statement.
UFG and AGA agreed in September last year to provide the company with short term loan finance of S$5 million and $3 million respectively, on commercial terms, each loan being repayable 180 days after drawdown. UFG and AGA each had an option, subject to the requisite approval of TSG's shareholders, to convert any part of the outstanding loans into Shares at a price equivalent to the volume weighted average closing price of the Shares during the 60 trading days prior to notice of such conversion.
The aggregate balance of the two facilities in respect of which conversion notices have been received is $3.1 million including accrued interest. The current balance of the AGA loan facility is $3.1 million including accrued interest, of which, pursuant to AGA's conversion notice, $1.7 million is to be converted into Shares.
The company will issue approximately 2,818,525 new shares to UFG and approximately 1,584,452 new shares to AGA as consideration for the release of the company's indebtedness to UFG and AGA under the three loan facilities.
The new shares, when issued, will represent approximately 4.05% of TSG's enlarged issued share capital and the respective interests of UFG and AGA will increase from 54.94% to approximately 55.30% and from 30.90% to approximately 31.11% of the company's total issued share capital.
Firebird Funds owns 2.94% of TSG. Around 86% of the AIM-listed TSG's shares are not publicly traded.
TSG started mining the Asacha field on the Kamchatka Peninsula at the end of September 2011. It shipped around 89 kg (2,900 oz) of gold and 97 kg of silver in the form of Dore to refineries between the middle of October and November 2. TSG also holds the license to the Rodnikovoye field on Kamchatka.