News blog

Angel Mining

• BY: Andrew Hore |
• POSTED: 22/10/2012 |

Late delivery of fuel led to the stopping of production at the Nalunaq gold mine operated by Angel Mining whose share price has fallen by more than one-third.

At 0.6p a share, Greenland-focused Angel is valued at £6.21m.

Production was stopped for 5 days and recommenced on 1 October when the fuel oil was delivered. This means that there will be a single gold pour in October and the quantity of gold will be lower than anticipated for the month.

Angel has issued 25m shares to Yorkville at a price of 1p each in return for an outstanding loan repayment. The loan has been reduced from $1.63m to $1.23m and full repayment delayed until March 2013. The interest charge is 4% a year.

Cyrus Capital has extended its loan by $2m and extended the repayment date to 15 February. The total loan to be repaid is $30.4m plus interest. In return for the extension, Cyrus has been granted an option to acquire 75% of the Angel subsidiary that owns its Greenland mining operations, excluding Nalunaq. The option, which is for £1 plus the write-off of an unspecified portion of money owed to Cyrus, is exercisable if Angel has not repaid at least $3.85m of the loan.

Angel needs to secure longer-term debt facilities.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2012_37.pdf