PGL Peninsular

TIDMPGL

RNS Number : 8116O

Peninsular Gold Limited

01 June 2015

PENINSULAR GOLD LIMITED

('Peninsular' or the 'Company')

Company Update

Environmental Update

On 2 December 2014 the Company announced that the environmental authorities had sought to attach additional requirements to the environmental consent for its wholly owned subsidiary, Raub Australian Gold Mining Sdn. Bhd.'s ("RAGM") operations at Raub. The Company is now pleased to announce that the environmental authorities have acknowledged that RAGM was at all times in compliance with the conditions given for RAGM's environmental approval.

This acknowledgement confirms that there are no amended or additional requirements relating to RAGM's environmental approval and the location of its tailings dams.

Raub Operations Restart

With the confirmation by the authorities that the tailings storage facilities matter has been resolved and the current tailings and planned tailings facilities are in accordance with the requirements, the work for the restart of the Raub operation can proceed. Work has been underway on site and with this matter cleared management now anticipate being able to resume gold production during July 2015.

Financing

As set out in the Company's announcement of 23 January 2015, the Company had raised GBP1.8 million by way of convertible redeemable unsecured loan notes ("2015 Loan Notes") which were to finance the working capital requirements for the re-commencement of operations at Raub.

The Group has obtained a deferral of the repayment of GBP1.2 million convertible loan notes ("2013 Loan Notes") which were due for repayment on 22 December 2014, until 23 June 2015. Additionally, the Group has obtained deferrals until June 2015 of its debt facilities with its Malaysian banking partners (Bank Rakyat Kerjasama Rakyat Malaysia Bhd. ("Bank Rakyat") and Alkhair International Islamic Bank Ltd. ("Alkhair") who have c.GBP18 million of outstanding loans and require servicing in the region of GBP140,000 per month, which is due to increase to approximately GBP450,000 per month from the end of June 2015 as capital as well as interest repayments fall due on the Bank Rakyat loan. The Company is in active discussions to seek further deferrals and/ or obtain refinancing of the 2013 Loan Notes, Bank Rakyat and Alkhair repayment obligations as due to the current lack of production at Raub it does not have sufficient operational cashflows to meet repayments for the Group's borrowing facilities. The Company is currently in discussions with several interested parties in relation to a fund raising. Management are confident of securing additional funds of up to GBP4 million during June 2015, however given the preliminary and non-binding nature of the discussions, there can presently be no certainty that a fund raising will be successfully concluded.

 
 Dato' Sri Andrew TY             Patrick Watson 
  Kam                             Finance Director 
  Chairman and Chief Executive    Peninsular Gold Ltd. 
  Peninsular Gold Limited         Tel: +44 (0)7799 885653 
  Tel: +60 (0)3 2698 8381 
------------------------------  ------------------------- 
 Samantha Harrison or            Martin Lampshire 
  Stephen Francavilla             Broker 
  Nominated Advisor               Daniel Stewart & Co. 
  RFC Ambrian Limited             Ltd. 
  Tel: +44 (0)20 3440             Tel: +44 (0)20 7776 
  6800                            6936 
------------------------------  ------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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